Despite a healthy production order, global consumer interest in Apple’s new smartphone series has reportedly exceeded expectations.
Apple will ship as many as 80 million iPhone 12s this year, noted DigiTimes. Last month, market watchers anticipated the corporation would manufacture 75 million units of its latest handsets for sale in 2020. But the Big Tech giant increased its production quota after preorders in multiple regions surpassed its internal estimates.
Financial Accessibility is Drive Sales
In 2019, Apple’s iPhone 11 ranked as the world’s best-selling smartphone, and the company is on pace to repeat that achievement this year. One reason the devices resonated so strongly with consumers is the lineup’s financial accessibility.
Apple is not offering its standard edition 2020 flagship for less than its predecessor. But in regions like the United States, wireless carriers have made the series more affordable thanks to multiple subsidies. For instance, new AT&T customers who commit to a multi-year contract with an unlimited data plan, and trade in their old handset can get $800 off their iPhone 12 purchase.
T-Mobile and Verizon, America’s other two leading mobile phone companies, also offer major subsidies for the device line.
Apple has taken steps to make its hardware more accessible via a partnership with Goldman Sachs. The corporation lets consumers who qualify for an Apple Card credit account buy the new iPhone through 24-month installment plans. The manufacturer also offers an upgrade plan that enables qualified buyers to acquire its latest hardware annually by making ongoing monthly payments.
By making its latest iPhones more financially accessible, Apple has experienced sellouts of certain models weeks before the line’s official launch.
The Power of Novelty
Another factor that has pushed iPhone 12 demand beyond projections is the mobile device line’s novel features.
Although Apple releases new iterations of its core product annually, this year’s model features a form factor redesign and cutting-edge internals. Market insider Ming Chi-Kuo recently stated new iPhone preorders beat his expectations because of its impressive hardware. Accordingly, Kuo said the 12 and 12 Pro would represent 30 to 35 percent each of Apple’s handset shipments this quarter.
In addition, the analyst mentioned Apple’s new premium mobile devices are heavily in demand in China.
The South China Morning Post supported his outlook by reporting Sino iPhone 12 presales have reached 2.3 million units. The Wall Street Journal mused interest in the corporation’s new hardware is strong among Sino consumers because of its 5G connectivity.
Because local telecoms have established fifth-generation mobile data networks throughout China’s big cities, the technology is a significant sales incentive. Research group Counterpoint reported 5G-enabled devices accounted for 33 percent of Sino handset sales in the second quarter. Since the iPhone 12 is Apple’s first 5G smartphone lineup, it is greatly appealing to the area’s premium phone buyers.
In fact, Wedbush Securities predicts 20 percent of Apple iPhone upgrades will come from the region within the next year.
Apple’s inclusion of 5G internals in its new products has also struck a chord with consumers outside the mainland. Last week, Taiwanese mobile carriers reportedly burned through their entire iPhone 12 presale allotments in 45 minutes. Following the blowout, area providers expect it will be the island’s best-selling Apple device since the iPhone 6.
Apple’s smartphones always do big numbers. But the confluence of accessibility and novelty could make the iPhone 12 one of the manufacturer’s most popular products to date.