Apple reportedly increases iPhone SE chip orders amid greater-than-expected demand

AppleInsider

A new supply chain rumor claims that Apple has increased orders for its new low-end iPhone SE, and plans to build more than 5 million units this quarter alone, as the company continues to struggle to keep up with demand for the 4-inch handset.

Supplies of the iPhone SE have been constrained since launch, and even as of Tuesday new orders are not advertised to ship for another two to three weeks direct from Apple. Chief Executive Tim Cook even admitted last week that Apple was caught by surprise by demand for the iPhone SE.

In response, Apple may now be upping production. Citing its usual supply chain sources, DigiTimes reported on Tuesday that chipmakers have seen increased component orders for the iPhone SE.

While Apple was apparently previously planning to build between 3.5 million and 4 million iPhone SE units in the current quarter, Tuesday's report suggests that Apple has revised those orders upward to more than 5 million units.

It also said that third-quarter iPhone SE orders will be similar to the second quarter, which would indicate Apple expects demand for the entry-level model to remain robust.

Since it launched in March, the iPhone SE has attracted not only new iPhone users and switchers, but also existing customers looking for the latest features --?like an A9 chip and 12-megapixel camera -- inside a compact 4-inch form factor. The iPhone SE is also the most aggressively priced new iPhone yet, starting a $399 for 16 gigabytes of storage, and increasing to $499 for a 64-gigabyte model.

"We're thrilled with the response that we've seen on it," Cook said of iPhone SE. "It's clear there's a demand there that's much beyond what we thought, which is why we have the constraint that we have."

DigiTimes sources speculated that Apple is putting increased focus on the mid-range and entry-level segments of the smartphone market as high-end sales decelerate. To that end, they said that Apple has slowed down the pace of orders for the iPhone 6s.

However, given that the "iPhone 7" is expected to launch in September, a slowdown in iPhone 6s production at this time of year would be in line with seasonal trends.

DigiTimes is known for having an unreliable track record in predicting Apple's future product plans, especially with regard to features and capabilities. However, its supply chain sources do frequently offer accurate outlooks on larger-picture factors for Apple, such as shipments and build trends.

wood1208

No wonder demand is so high. iphone SE has everything anyone wants in smaller phone, In fact, 4 out 5 iphone users in my own family about to upgrade from their 4S(2)/5(1)/5S(1) to SE.

lkrupp

If true just one more nail in the coffin of the so-called techies who think they know what the public wants. How many times were we lambasted with ‘techies’ claiming everybody wanted big phones? Same goes for trashing the Macbook for not having every port imaginable. Turns out the poor little, inadequate thing may be the best selling Mac out there.

EsquireCats

The phone sold out quickly and went deep into back order. All of this information was publicly visible from Apple's website, and yet the supply chain rumour can only seem to provide the obvious "increase orders of chips"... well duh, of course they're increasing orders. They're simply meeting demand.

rogifan_new

lkrupp said:

If true just one more nail in the coffin of the so-called techies who think they know what the public wants. How many times were we lambasted with ‘techies’ claiming everybody wanted big phones? Same goes for trashing the Macbook for not having every port imaginable. Turns out the poor little, inadequate thing may be the best selling Mac out there.

I have a feeling the $399 price point has something to do with it. If this phone was $459 or $549 I don't think it would be selling nearly as well.

bkkcanuck

sog35 said:

I really hope Apple decides to release a top tier 4 inch iPhone 7 in September. 

I doubt it, too little time to add a new phone to the lineup... at most they might release a slight bump to the iPhone SE next spring (same name).... but then I don't see that much more that can be added to make it much better.  I will probably go with the iPhone SE when my 4S eventually dies.

bkkcanuck

EsquireCats said:

The phone sold out quickly and went deep into back order. All of this information was publicly visible from Apple's website, and yet the supply chain rumour can only seem to provide the obvious "increase orders of chips"... well duh, of course they're increasing orders. They're simply meeting demand.

In fact, it did not sell out quickly... not the iPhone way it was more of a slow buildup over the first week.  The first few days they were easily available and as people bought the phones and other people in the wild saw them the demand grew until at the end of the week it became difficult to acquire.

cropr

sog35 said:

lkrupp said:

If true just one more nail in the coffin of the so-called techies who think they know what the public wants. How many times were we lambasted with ‘techies’ claiming everybody wanted big phones? Same goes for trashing the Macbook for not having every port imaginable. Turns out the poor little, inadequate thing may be the best selling Mac out there.

Bingo.

Same can be said about the iPad Pro (techies say it can't possibily replace people's laptops)

Bottom line is portability is extremely important for the majority of users. And the SE is more portable than the 6. 

I really hope Apple decides to release a top tier 4 inch iPhone 7 in September. 

Nice that the iPhone 5SE is getting traction in the market.  There is definitely a market for a full featured 4" phone.
However, I would not make the link to the iPad Pro, as it could not stop the decline of the iPad product line.  For Apple this can only be a failure,  anyway you look at it.

gatorguy

"Citing its usual supply chain sources, DigiTimes reported on Tuesday that chipmakers have seen increased component orders for the iPhone SE.

While Apple was apparently previously planning to build between 3.5 million and 4 million iPhone SE units in the current quarter, Tuesday's report suggests that Apple has revised those orders upward to more than 5 million units."

realistic

cropr said:

sog35 said:

Bingo.

Same can be said about the iPad Pro (techies say it can't possibily replace people's laptops)

Bottom line is portability is extremely important for the majority of users. And the SE is more portable than the 6. 

I really hope Apple decides to release a top tier 4 inch iPhone 7 in September. 

Nice that the iPhone 5SE is getting traction in the market.  There is definitely a market for a full featured 4" phone.
However, I would not make the link to the iPad Pro, as it could not stop the decline of the iPad product line.  For Apple this can only be a failure,  anyway you look at it.

Any company would be absolutely thrilled to have such a failure.

schlack

how did apple get blindsided by this demand? so obvious that many iPhone users don't want a large iPhone and were holding onto their old phones for this reason. i have an iPhone 6 but i'm looking forward to returning to the smaller form factor on my next upgrade cycle. they need a 128GB version at $599. don't want to give up my 128GB storage.

wood1208

cropr said:

sog35 said:

Bingo.

Same can be said about the iPad Pro (techies say it can't possibily replace people's laptops)

Bottom line is portability is extremely important for the majority of users. And the SE is more portable than the 6. 

I really hope Apple decides to release a top tier 4 inch iPhone 7 in September. 

Nice that the iPhone 5SE is getting traction in the market.  There is definitely a market for a full featured 4" phone.
However, I would not make the link to the iPad Pro, as it could not stop the decline of the iPad product line.  For Apple this can only be a failure,  anyway you look at it.

Next iteration iphone SE will not be much different than current and will be upgraded next year with trickle down tech from it's big siblings. And that is perfectly fine for 4" iphone. Just keep price down. Ipad pro is no failure. It serves different needs than iphone. In order to replace laptop with ipad pro, as with it's great portability, it has to functionaly/usabilty wise feel closer to laptop, In fact. it is doing so with smart connector and thinner keyboard attachment. My opinion, larger ipad pro has better chance to convince users to replace laptop with it..

misa

AppleInsider said:

A new supply chain rumor claims that Apple has increased orders for its new low-end iPhone SE, and plans to build more than 5 million units this quarter alone, as the company continues to struggle to keep up with demand for the 4-inch handset.
...
DigiTimes is known for having an unreliable track record in predicting Apple's future product plans, especially with regard to features and capabilities. However, its supply chain sources do frequently offer accurate outlooks on larger-picture factors for Apple, such as shipments and build trends.

Gee, it's like everyone was right and nobody wanted a larger smartphone, and those that were not buying the new larger models were hoping for this. Hell I would have waited for this too, but decided that I couldn't put up with an 9 year old cell phone any longer.

bobschlob

rogifan_new said:

lkrupp said:

If true just one more nail in the coffin of the so-called techies who think they know what the public wants. How many times were we lambasted with ‘techies’ claiming everybody wanted big phones? Same goes for trashing the Macbook for not having every port imaginable. Turns out the poor little, inadequate thing may be the best selling Mac out there.

I have a feeling the $399 price point has something to do with it. If this phone was $459 or $549 I don't think it would be selling nearly as well.

I dunno. My 'guess' is the $500 64GB model is the big seller.

mike1

bkkcanuck said:

EsquireCats said:

The phone sold out quickly and went deep into back order. All of this information was publicly visible from Apple's website, and yet the supply chain rumour can only seem to provide the obvious "increase orders of chips"... well duh, of course they're increasing orders. They're simply meeting demand.

In fact, it did not sell out quickly... not the iPhone way it was more of a slow buildup over the first week.  The first few days they were easily available and as people bought the phones and other people in the wild saw them the demand grew until at the end of the week it became difficult to acquire.

Of course. People were not waiting outside for days to get this phone. Just regular folk who were waiting for a smaller phone with which to upgrade their 4, 4S, 5 or 5S. They did it on their next day off or when they had the time. Important, but not the focus of their life.

fallenjt

wood1208 said:

No wonder demand is so high. iphone SE has everything anyone wants in smaller phone, In fact, 4 out 5 iphone users in my own family about to upgrade from their 4S(2)/5(1)/5S(1) to SE.

Except the camera. I would've traded in my 6+ for it if its camera was the same as 6 series and take over my wife's 6S. My wife kept complaining about her 6S platform. She wanted her 5S back but I sold it. 

fallenjt

wood1208 said:

cropr said:

Nice that the iPhone 5SE is getting traction in the market.  There is definitely a market for a full featured 4" phone.
However, I would not make the link to the iPad Pro, as it could not stop the decline of the iPad product line.  For Apple this can only be a failure,  anyway you look at it.

Next iteration iphone SE will not be much different than current and will be upgraded next year with trickle down tech from it's big siblings. And that is perfectly fine for 4" iphone. Just keep price down. Ipad pro is no failure. It serves different needs than iphone. In order to replace laptop with ipad pro, as with it's great portability, it has to functionaly/usabilty wise feel closer to laptop, In fact. it is doing so with smart connector and thinner keyboard attachment. My opinion, larger ipad pro has better chance to convince users to replace laptop with it..

Sure trickle down the 6S camera, 3-D Touch and faster Touch ID, I'll drop my 6+ like a stone.

tzeshan

schlack said:

how did apple get blindsided by this demand? so obvious that many iPhone users don't want a large iPhone and were holding onto their old phones for this reason. i have an iPhone 6 but i'm looking forward to returning to the smaller form factor on my next upgrade cycle. they need a 128GB version at $599. don't want to give up my 128GB storage.

They are stupid on numbers.  They know 30% of iPhone users are still using 4" iPhone.  How do they calculate only three millions of us will buy an SE?  

AI_lias

Here's to hoping that Apple will go back to a slab phone like the SE. iPhone 6 is the worst design. We'll it's a good design if you are invested in Apple and think of their screen replacement business. Other than that, very impractical, slippery and fragile, and looks bad, too.

eliangonzal

It's selling great. It's not selling great. Demand is high, demand is low. People want this phone. People don't care about it. One can get whiplash from all these stories.

mac_128

wood1208 said:

cropr said:

Nice that the iPhone 5SE is getting traction in the market.  There is definitely a market for a full featured 4" phone.
However, I would not make the link to the iPad Pro, as it could not stop the decline of the iPad product line.  For Apple this can only be a failure,  anyway you look at it.

Next iteration iphone SE will not be much different than current and will be upgraded next year with trickle down tech from it's big siblings. And that is perfectly fine for 4" iphone. Just keep price down.

You're saying they will just keep the iPhone 5 case design and just give it the latest processors and features indefinitely?