Apple has been forced to increase A13 chip orders to meet higher-than-anticipated demand for iPhone 11, according to a new report.
Taiwan Semiconductor Manufacturing Company (TSMC), Apple’s primary chip supplier, has been asked to churn out more chips this quarter as iPhone outperforms market and Apple expectations.
Last year’s iPhone refresh was never expected to be an overwhelming success. Many saw it as a stepping stone — an incremental refresh that would appease iPhone fans while Apple finalized 5G models.
But it turns out customers can’t get enough of the iPhone 11 series. It received strong demand at launch, and iPhone 11 in particular is still selling incredibly well four months later.
Apple needs more iPhone chips
Apple has asked TSMC to increase its output of A13 chips this quarter to satisfy strong iPhone 11 demand, reports Bloomberg, citing sources familiar with Apple’s plans.
The increased orders are expected to offset any potential decrease in orders from Huawei, which faces tighter sanctions in the U.S. TSMC has forecast another strong quarter for early 2020.
TSMC is also expected to see a boost from an imminent iPhone SE refresh. Another Bloomberg report reveals the budget handset will enter mass-production next month ahead of a March debut.
A surprise success
iPhone 11 sales have been surprisingly strong in China, where Apple has struggled to see success in the past. The lineup is said to be outselling the iPhone XS series launched in 2018.
This is a promising sign for Apple. It sees China as an increasingly important market as growth stagnates in the U.S. and Europe. And it comes at a time when overall smartphone sales have been shrinking.
One source said iPhone 11 in particular, which sells for $50 less than 2018’s iPhone XR, is the biggest driver of demand.