Apple is launching their new iPhone 7 and 7 Plus smartphones tomorrow and it looks like the devices will be in short supply at launch.
According to a recent report, Apple is planning to ship around 100 million iPhone 7 handsets by the end of the year.
Apple has set a goal of having had its manufacturing partners make nearly 100 million iPhone 7 devices by the end of 2016, higher than its suppliers’ earlier prediction of 80-85 million units, the sources indicated. Actual demand for the iPhone 7 is expected to become clear after mid October, the sources said.
Apple has apparently increased orders of the A10 processor for the new iPhone 7 and also other components, and the orders are apparently higher than previously estimated.
High Demand and Supply Challenges
The new iPhone 7 is expected to sell out quickly when it launches tomorrow. The iPhone 7 Plus will not be available tomorrow as it has already sold out. This high demand is not unusual for Apple, as their new product launches often see a rush of early adopters eager to get their hands on the latest technology. However, the scale of the demand this time around seems to have taken even Apple by surprise.
The increased orders for the A10 processor and other components suggest that Apple is gearing up for a significant production ramp-up. The A10 processor, known for its enhanced performance and efficiency, is a critical component that powers the iPhone 7’s advanced features. By securing more of these processors, Apple aims to meet the anticipated high demand and avoid potential supply chain bottlenecks.
Market Expectations and Consumer Interest
The iPhone 7 and 7 Plus come with several new features that have piqued consumer interest. These include improved camera capabilities, better battery life, and the controversial removal of the headphone jack in favor of wireless audio solutions. The water and dust resistance features also add to the appeal, making the devices more durable for everyday use.
The market’s response to these features will become clearer after mid-October, as noted in the report. This period will provide a better understanding of actual consumer demand and whether Apple’s production estimates align with market realities. Historically, Apple’s iPhone launches have set new sales records, and the company is likely hoping to continue this trend with the iPhone 7 series.
Moreover, the iPhone 7’s launch comes at a time when the smartphone market is highly competitive. Rivals like Samsung, Google, and Huawei are also releasing new models with cutting-edge technology. Apple’s ability to capture consumer interest and maintain its market share will be crucial in this environment.
In addition to the hardware improvements, Apple has also focused on enhancing the software experience with iOS 10. The new operating system brings a host of new features, including an improved Siri, redesigned notifications, and a more intuitive user interface. These software enhancements complement the hardware upgrades, offering a more seamless and enjoyable user experience.
The anticipation surrounding the iPhone 7 and 7 Plus launch is palpable, and it will be interesting to see how the market responds in the coming weeks. With the holiday season approaching, Apple is likely aiming to capitalize on the increased consumer spending during this period.
Source Digitimes, Phone Arena
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