Apple Reportedly Places Order for 72-78 Million iPhone 7 Units to Suppliers

Peak iPhone? If the latest supply chain report is to be trusted, the Cupertino firm doesn’t envision iPhone sales tapering off anytime soon, at least not this year. Barron’s said Monday, citing a report in the Taiwanese publication Economic Daily Times, that Apple has now asked its contract manufacturers and Asian suppliers to prepare for a much higher-than-expected iPhone 7 production volume in 2016.

While the companies involves and analysts expected Apple to place an order for around 65 million units of the iPhone 7 and iPhone 7 Plus, the Cupertino company has asked its suppliers to prepare their production lines to manufacture 72-78 million iPhones by the end of this year.

This is the highest order that Apple has placed to its suppliers in the last two years, and is even higher than the iPhone 6 and iPhone 6 Plus, which sold in excess of 75 million units in just one quarter after their launch.

The report also suggests that Hon Hai Precision technology, owned by Foxconn, will remain the primary assembler for iPhone 7 and its Plus sibling. Pegatron Corp. will also be a key assembler for Apple this year around. Both companies will also be producing the dual camera and glass components used inside the upcoming iPhones, and thus will play a key role in Apple’s supply chain this year.

Foxconn and other suppliers have reportedly already started hiring early due to the complex design of the iPhone 7 and iPhone 7 Plus. The companies usually start hiring in June, but the complex design and likely the higher order from Apple led them to start preparing early for the launch of the new iPhones.

The only sticking point in the report may be the mention of “glass casing components” as the reliable KGI Securities analyst Ming-Chi Kuo thinks the Apple handset will adopt a glass enclosure next year rather than this year.



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