TF International Securities Ming-Chi Kuo shared an investor note that provided an update on the status of Apple’s latest iPhones. The insider stated the corporation is on track to ship between 12 million to 14 million iPhone SEs at launch. He also claimed the corporation would stagger the release of the iPhone 12 series because of multiple production problems.
iPhone SE Updates
Kuo’s note indicated preorders for Apple’s new low budget handset have been “better than market expectation.” Indeed, the analyst estimates the Big Tech firm will ship between 12 million to 14 million iPhone SEs in the current quarter and an additional 10 million in Q3 2020. The smartphone expert’s forecast is supported by a report that Chinese e-commerce platform JD.com received 340,000 reservations for the device.
However, Kou believes the unexpected popularity of the iPhone SE is not an entirely positive development for Apple. The insider wrote COVID-19 prompted economic uncertainty is driving consumer interest in the budget handset. As a result, TF International Securities predicts sales of the more expensive iPhone 11 and iPhone 11 Pro will decline.
Accordingly, the firm has slashed its overall Q2 2020 Apple smartphone shipment by 30 percent.
The analyst also offered bad news for buyers hoping to nab a slightly bigger version of the iPhone SE soon. Kuo said Apple would not release a 5.5 or 6.1-inch display variant of the low-cost handset until the second half of 2021. The analyst previously pegged the iPhone SE Plus’ release for the first half of next year, but the company has postponed its production.
iPhone 12 Staggered Rollout
The Apple insider also stated Apple would stagger the rollout of its iPhone 12 series due to production issues.
Kuo wrote Apple has remotely conducted its online qualification process for the new line and has delegated certain tasks “to local employees.” Consequently, the corporation’s engineering verification testing has experienced a one month delay, which will affect device mass-production. Kuo states Apple will send the 5.4-inch and 6.1-inch iPhone 12s into volume manufacturing this September as predicted, but the 6.7-inch model won’t join them until October.
TF International Securities also reports Apple is dealing with a problem related to its flagship smartphone’s 5G antennas. According to Kuo, the Silicon Valley giant changed the design of the iPhone 12 millimeter-wave components earlier this month. However, the closure of the firm’s testing lab has delayed its assessment of the redesign’s quality. Therefore, the analyst estimates its allocation of 5G handsets could be down by as much as 15 to 20 percent.
Notably, Apple staggered the launch of the iPhone XS and XR, with the former available a month before the latter. As such, the electronics maker could employ a similar rollout strategy for the different iterations of the iPhone 12. However, with the production issues it has already encountered, the company might be better served by delaying the line’s launch.
As the coronavirus pandemic has brought significant upheaval to the global economy, expensive consumer tech has lost its luster. Besides, the iPhone SE received strong reviews from The Verge and Marques Brownlee and is resonating with the public. The corporation might see better sales for its next-generation handset mid-2021 when the world has had more COVID-19 recovery time.