Apple has asked suppliers to boost production of iPhone 17 model, the Information reports
Apple has instructed suppliers to increase production of the entry-level iPhone 17 by at least 30% due to strong pre-orders, according to reports. This indicates a higher consumer preference for the $799 model over the more expensive Pro versions. The shift highlights a growing price-sensitive demand, raising concerns about Apple's ability to maintain growth through premium products. Analysts warn that increased sales of lower-priced models may impact Apple's profit margins, despite helping to protect market share.
Sept 19 (Reuters) - Apple (AAPL.O) has told at least two suppliers to boost production of the entry-level model iPhone 17 by at least 30% after strong pre-orders last weekend, the Information reported on Friday, citing people familiar with the matter.
The development suggests more consumers than Apple anticipated chose the cheaper $799 iPhone 17 over the premium Pro models, which start at $1,099 and typically offer superior materials, cameras, processors and displays.
Apple did not immediately respond to a Reuters request for comment.
The shift underscores how even Apple, long known for pushing customers toward its highest-margin devices, is facing more price-sensitive demand, raising questions about Apple’s ability to sustain growth through premium upgrades.
Analysts have said sales of lower-priced models could weigh on Apple’s profit margins, even as they help the company defend market share.
