(Reuters) -Apple has told at least two suppliers to boost production of the entry-level model iPhone 17 by at least 30% after strong pre-orders last weekend, the Information reported on Friday, citing people familiar with the matter.
The development suggests more consumers than Apple anticipated chose the cheaper $799 iPhone 17 over the premium Pro models, which start at $1,099 and typically offer superior materials, cameras, processors and displays.
Apple this week asked Luxshare Precision, one of its two main iPhone assemblers in China, alongside Foxconn, to boost daily output of the standard iPhone 17 by about 40%, the report said.
Apple did not immediately respond to a Reuters request for comment.
Apple is betting its latest iPhone lineup, including a thinner “iPhone Air,” will revive growth in the flagship product after years of lackluster sales, as consumers upgrade less frequently and new models offer only incremental improvements.
The entry-level iPhone 17, which went on sale Friday, now includes screen and camera upgrades once limited to the Pro models, narrowing the gap with Apple’s higher-priced versions.
The shift underscores how even Apple, long known for pushing customers toward its highest-margin devices, is facing more price-sensitive demand, raising questions about its ability to sustain growth through premium upgrades.
Analysts have said sales of lower-priced models could weigh on Apple’s profit margins, even as they help the company defend market share.
(Reporting by Akash Sriram in Bengaluru; Editing by Alan Barona)
Comments