Apple has told suppliers to increase their production of its latest iPhone 11 range by up to 10%, or 8 million units, the Nikkei Asian Review has learned, following better-than-expected demand worldwide for its new cut-price handset.

The increase in orders appears to validate Apple CEO Tim Cook’s new strategy of enticing budget-conscious consumers with cheaper models amid the weakening world economy. The order boost of between 7 million and 8 million units is equivalent to total annual phone shipments this year by Google, a rising iPhone rival in Apple’s home U.S. market.

“This autumn is so far much busier than we expected,” one source with direct knowledge of the situation said. “Previously, Apple was quite conservative about placing orders,” which were less than for last year’s new iPhone. “After the increase, prepared production volume for the iPhone 11 series will be higher compared to last year,” the source said.

Shares of Apple component manufacturers rose in Japan after publication of the Nikkei report, outperforming the broader market. Japan’s Minebea Mitsumi closed up 3%, troubled iPhone screen maker Japan Display rose by almost 2%, while Murata Manufacturing and Alps Alpine also gained.

Apple launched its three new iPhone models — the iPhone 11, 11 Pro, and 11 Pro Max — in early September, and for the first time in its history reduced the starting price of the model upgrade, despite better cameras, to $699, compared to $749 for last year’s iPhone XR. (more…)