iPhone 12 Shipments Could Reach 80 Million Units By End of 2020

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iPhone 12 shipments could reach as many as 80 million units by the end of the year thanks to Apple’s more affordable pricing strategy, according to market observers (via DigiTimes).

The pricing dynamics, coupled with a number [of] technology updates, including a faster A14 processor, improved product designs and camera functionalities, is expected to bring a new round of sales growth for Apple, said the observers.

Shipments of the new ‌iPhone‌ lineup, including the ‌iPhone‌ 12, ‌iPhone‌ 12 mini, iPhone 12 Pro, and ‌iPhone 12 Pro‌ Max, will at least top 70 million units by the end 2020, with the possibility of hitting 80 million barring a further escalation of the US-China trade conflicts, they said.

The ‌iPhone 12 Pro‌ and ‌iPhone 12 Pro‌ Max start at $999 and $1,099, respectively, which are the same prices that the iPhone 11 Pro and iPhone 11 Pro Max were when they launched last year. However, the 256GB and 512GB storage options for both ‌iPhone 12 Pro‌ models are $50 cheaper than their predecessors were at those capacities. Meanwhile the ‌iPhone‌ 12 starts at $799, and the ‌iPhone‌ 12 mini starts at a more affordable $699 entry point.

Apple’s decision to adopt a two-phase shipment strategy – with the ‌iPhone‌ 12 and 12 Pro becoming available later this month and the ‌iPhone 12 Pro‌ Max and ‌iPhone‌ 12 mini arriving in November – is not expected to significantly affect demand, and may extend Apple’s order pull-ins from the upstream supply chain to the first quarter of 2021, according to DigiTimes‘ sources.

TSMC, which produces the 5-nanometer A14 Bionic processor in Apple’s new iPhones, is expected to benefit most from robust sales. TSMC also fabricates the A14 chips in Apple’s iPads, which are currently seeing a surge in popularity, and the foundry is expected to roll out over 150,000 wafers for 5nm chips in the fourth quarter of 2020, with Apple accounting for about 90% of related orders.

Foxconn remains Apple’s main ‌iPhone‌ assembler, and has reportedly secured the bulk of orders for the new ‌iPhone‌ 12 series through the first quarter of 2021. Foxconn is also the sole supplier of the 6.7-inch ‌iPhone 12 Pro‌ Max and is estimated to be handling over 70% of the orders for the 6.1-inch ‌iPhone‌ 12 and ‌iPhone 12 Pro‌, according to DigiTimes.

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