iPhone 8 Manufacturing Started Ahead of Schedule, 300 Percent Increase for June Quarter: Report

HIGHLIGHTS

  • iPhone 8 production should start in June
  • This is earlier than historic norms
  • iPhone 8 release date, however, will remain unchanged
2017 will mark the 10-year anniversary of the launch of the original iPhone, and Apple is said to be readying something special for the iPhone 8. With the company expected to host the iPhone 8 launch in September, a fresh report suggests that it is starting production of the smartphone ahead of schedule in order to ensure that its supply can meet the demand. In fact, the iPhone 8 manufacturing is now said to start as early as the June quarter this year.


Barron's Tech Trader Daily cites John Donovan and Steve Mullane from BlueFin Research Partners to report that the iPhone 8 production activity should start earlier than historic norms. The authors write, "The most intriguing data points that we have uncovered suggests that AAPL is ramping the next generation iPhones earlier than historical norms, although we have no indication that there has been any change in release plans for the iPhone 8/X. Builds have been pulled in a few months while aggregate next generation forecasts have increased 10 percent from last month to 122M. Additionally, AAPL has adjusted iPhone 7, 7 Plus, and SE production downward in preparation for the next generation launch."

In fact, the researcher report said that it is expecting 300 percent increase in iPhone 8/X production in the June quarter. It also says that it has raised the estimates for total iPhones manufactured in the quarter from 45 million to 48 million. For this, Apple is said to be lowering the number of iPhone 7, iPhone 7S, and older models still in production, and increasing iPhone 8 manufacturing.

The report suggests that the production of its current generation models (iPhone 7 and iPhone 7 Plus) will be minimised to make room for its next models, expected to be called iPhone 8, iPhone 7S and iPhone 7S Plus. Apple is looking for early production to ensure sufficient supply on launch day, and realise manufacturing issues early with time to rectify them if such cases arise. The biggest smartphone vendor in the world would not want any Bendgate or Touch Disease issues with the iPhone 8, as it marks a big milestone for the company. The analysts also note that even though the production will start early, the release date should remain unchanged.

As mentioned, the iPhone 8 will come with significant changes, and is expected to sport an all-glass body, a wraparound OLED display, and improved 3D Touch functionality.

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