iPhone SE is more popular than Apple anticipated so it’s boosting production

By , May 3, 2016

iPhone SE Price

Due to stronger-than-expected sales of the four-inch iPhone SE, Apple has boosted production of the handset in the second quarter of this year, Taiwanese trade publication DigiTimes reported Tuesday.

Citing industry sources, DigiTimes claims Apple’s just increased orders for the iPhone SE to more than five million units from the original plan of 3.5-4 million units in the second quarter of 2016.

iPhone SE demand outstripping supply

“The outlook for Apple’s chip orders for iPhone SE for the third quarter will likely be similar to that for the second quarter,” said the sources, signaling that the iPhone SE’s popularity likely isn’t just a temporary anomaly.

“We’re thrilled with the response that we’ve seen on it,” Cook said of the iPhone SE on a recent conference call with Wall Street analysts and investors . “It’s clear there’s a demand there that’s much beyond what we thought, which is why we have the constraint that we have.”

iPhone 6s on a seasonal decline

However, sales of the iPhone 6s and iPhone 6s Plus models are falling, which would be in line with seasonal trends, prompting Apple to slow down its pace of orders for that handset.

The Cupertino firm is now projected to ship 41-43 million iPhones in the second quarter of 2016 before ramping up shipments to 45-48 million in the third quarter, according to the latest estimate of Digitimes Research.

Latest tech in 4″ form factor

Starting at just $399, the iPhone SE is the most affordable handset Apple’s introduced thus far. The device, which basically packages a whole bunch of Apple’s technology from the iPhone 6s into the four-inch form factor, has seen particularly encouraging acceptance in China.

“In the last month, I’m thrilled at what we’ve seen with the iPhone SE launch that’s been there,” Tim Cook told host Jim Cramer yesterday in CNBC’s Mad Money show.

Cook also said that Apple has “great innovation in the pipeline” and that upcoming iPhones will have things you can’t live without. “We are going to give you thinks that you can’t live without that you just don’t know you need today,” said the Apple CEO.

Source: DigiTimes

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  • coLin

    Hopefully Apple will realize that people are not willing to pay like they used to be for a phone

    • Shinonuke

      Not sure where you get that idea from but their iPhone sales are so monstrous even with a 7% decrease in sales compare to any single android phones out there.

    • Rowan09

      Not true because the price of the Nexus went up and every other premium device is being sold at a premium.

  • tariq

    no one really expected a small screen phone to be in high demand. But Apple released SE anyways just to see how much they can sell and they did pretty well

    • ravinigga

      A lot of people want to keep the 4inch model a perfect size.
      So apple listen (they need to do that more 🙂 and the keep but with most of the current 6s hardware

    • John Smith

      The thing is, a good majority of people still prefer the smaller 4 inch variant because of it’s one-handed comfort. The reason many think the larger screens are more popular is because it’s the same people who were making the noise when Apple didn’t have larger phones. It’s very popular because people jumped from other platforms for the larger screen, but many still love the 4-inch one. I’d love if the 7 came with a 4-inch option, 4.7 is awesome for movies but it gets uncomfortable when multitasking.

  • Satyam Panchal

    Steve jobs was right about small screen it’s should fit in pocket and hands

    • Shinonuke

      iPhone users already know. It’s the Android users that wants it bigger. I prefer the 4.7″ factor after using the iPhone 6s plus

    • Mike M. Powell

      My friend can’t even get her 6s+ to fit in her pocket, idk if I can fully blame apple or just her jeans (work pants) for that lol but I like the ip6 size. When I held one of my friends old 4s model n my broken 5s, I felt small as shit xD.

      • Mike

        For all those people saying that oh the 4inch is perfect have no clue what they are talking about unless they have really small hands. I have a friend that had the iPhone 5s and he wasn’t sure if he wanted the iPhone 6 or 6+. He got the iPhone 6+ and never looked back. I had the iPhone 5s then got the Note 5. Now when I use my sisters iPhone 5s it feels like I’m playing with a toy. My phone fits perfectly into my pockets and that 5.7 inch with 2k screen. Hands down the best phone size. Before you complain use it for a week or two then try going back. I bet you $100 that you will like the bigger screen since it allows you to do and see more. Think about typing on the keyboard and out much more room you have so you hit the right key every time as well as seeing the entire keyboard without you thumbs blocking it all.

      • Mike

        Or its just my Note 5 I like since I have the S Pen which lets me do more and will have the nice multi-tasking feature that helps using the entire screen.

  • Eli Montoya

    I got the SE for the price and size. The 6 would slip from my hands. And I hated the design.

    • John McClane

      Same here…! 😉

    • P.

      +1 🙂

  • czbird

    About time. Totally sold out around here.

  • n0ahcruz3

    Lol 6s and 6s+ not selling well while 5 SE “high demand”, that’s not good at all

    • Rowan09

      When was it said the 6s/6s+ wasn’t selling well? Is it because Wall Street gave a number and it didn’t exceed or meet that number? Both those phones sold and are selling very well.

      • n0ahcruz3

        uhmmm where was it said that they’re selling well?

      • Rowan09

        Right so slowing sales means it’s not selling well? It’s not possible to go 13 years and beating previous years every year. The iPhone is selling well as shown by the sales figures, just not as well as some thought it would is my point.

      • n0ahcruz3

        Dude which part of declining sales did u not understand? If u followed the latest earnings call not a single apple product showed growth. Lets be real not sugar coat. This goes to show that consumers are getting more intelligent when it comes to chosing smartphones. Anyway I’ve read somewhere that Galaxy S7 did well for Samsung, more iPhone users switched to Galaxy maybe?

      • Rowan09

        Sugar coat what? Check the profit from those products and you’ll see that declining sales doesn’t mean not selling. If I sold 10 million for 13 years and then 9 million after, would you say my profit is no longer selling? Consumers are getting more intelligent when choosing smartphones meaning what getting a Samsung device is a smarter move? I own the S7 along with my 6S + and it’s nothing more or less than any other Android device. It’s lagged on me multiple times and I barely use it. The VR headset is meh at best and the Edge screen is basically useless. Don’t be fooled by the earnings for Samsung since they don’t give sales figures. I have the S7 because everywhere had a buy one get the other free deal on a brand new premium device. Please tell me which other premium device is doing such a sale? My wife didn’t like the S7 coming from the S6 Edge so I sold her phone and kept mine. I couldn’t even sell the S7 Edge in Gold which was hard to find in stores for $700 and it was brand new and cost $779. I can now purchase a S7 Edge for about $600 new from eBay fully unlocked.

      • n0ahcruz3

        Lol whatever dude

      • Rowan09

        Stand corrected 9 years. There’s nothing to be optimistic about if you believe Apple is doomed show me the figures that says they are? I want the stock to go down a little more so I can jump in and buy.

      • n0ahcruz3

        I didn’t say apple is doomed. In fact nobody in the internetverse is saying apple is doomed. They just need to release a product which is really enticing and upgrade worthy.

      • Rowan09

        Then when they do how do they keep it going? People just don’t upgrade as much anymore especially since 2 year contracts are gone?

      • n0ahcruz3

        On the contrary, people have options to upgrade every year with iPhone forever etc plan. But as you’ve seen with their latest earnings 6s 6s+ didn’t really put much when it comes to iPhone sales. However come iPhone 7 things will pick up, but it all depends on how the 7 will be. If the 7 is unveiled and iPhone sales still stagnant that means iPhone peaked. That’s my 2¢.

      • Rowan09

        Every phone manufacturer is peaking. All smartphones are evolutionary. iPhone forever is with Sprint only and they are last of the big 4, plus you have to pay for the service. With 2 year contracts people got the discounted phone and didn’t pay monthly to pay off the phone. The iPhone 7 if as rumored won’t be as big a hit as the Amoled one in my opinion.

      • n0ahcruz3

        thats why i said etc. Sprint has the iphone forever other carriers offer the same plan with a different moniker obviously(jump, next, whatever) but they all offer every year upgrade but you have to trade in your phone(leasing) thereby monthly payment remains the same. With the evolutionary argument at least other manufacturers offer higher spec with same price or less as the iPhone. others offer 2k whereas iphone remains at 329ppi for 6 and 1080p for 6s+ at 389 ppi. I know you’re gonna say specs doesnt matter. iPhone sales is everything for the investors. Thats why even if iPad sales tanked for the past few years investors doesnt care. iPhone is the bread and butter for Apple.

      • Rowan09

        All those plans involve paying extra for the service. Higher spec meaning 2K screen and PPI? Come on man almost no one buys a phone because of a 2K screen or PPI. Now when it comes to camera, performance, etc the iPhone is just as good if not better than every premium device. Plus at least when you purchase an iPhone you know it holds it value and will get at least 3-5 updates.

      • n0ahcruz3

        Thats not the point of this discussion.. The fanboyism is strong with this one. Lol have a good day to you.

      • Rowan09

        You brought up why you believe it declined and I gave my reasons, which you implied wasn’t true by stating the iPhone forever plan, etc. What device do you own? I have an iPhone and 2 Android devices, the Note 2 and S7 Edge. I like both sides and pointing out the truth not opinion.

      • n0ahcruz3

        I have an iPhone, never owned a flagship Android device FYI. And im not an Apple fanboy. So you’re saying iPhone forever plan doesn’t make u upgrade iPhone forever? Lol i think u need to research more. Lmfao u even said to your earlier post iPhone was 13 years old

      • Rowan09

        No need to lie Bro I fix tech devices and made a lot of money first fixing iPhone and then Android, tablets, computers, etc. iPhone forever plan isn’t free is my point, you pay extra for it. I don’t drink the Apple kool aid and own more non Apple devices than you do including multiple Fire TVs and tv sticks which I hack and sell. All I’m saying is slow down in sales doesn’t mean not selling or a flop. Apple will be fine and I phone worth upgrading to is very subjective. The Galaxy S5 to S7 has basically the same to similar specs and it is a worth while upgrade from the S5 to S7 even with those minor improvements.

      • n0ahcruz3

        Omg I didn’t say iPhone forever plan is free hahahaha i said these are leasing plans so u trade in your phone thats the catch. You’re hard to rationalize dude. Smh oh btw galaxy S7 took over iphone 6s in the US. If you think im lying go to BGR. You have to read and get other apple related news elsewhere not just here. This is iDB they rarely put negative news regarding apple.

      • Rowan09

        The phone was just released and doesn’t give sales figures so how exactly did it over take iPhone by shipment? Even if it did, I would expect it to since it’s a new release. As I stated earlier they had buy one get one free deals which would also inflate the numbers. I read both Android and Apple news since I’m financially invested in them both, especially as a repair guy.

      • n0ahcruz3

        Can u send me a link to this buy 1 get 1 free promo. Cause im definitely interested not all the time they offer buy one get 1 for a flagship phone. How come ive never heard about this? What was i doing lmfao. Can u send me a link to this buy one get 1 free?

      • Rowan09

        Exactly they don’t but they did with this phone because it had to sell for them. Dude it was on the Samsung website and for every phone company. They even gave away VR headset which both of them. I got 2 S7 Edge with 2 VR headsets. I sold one of the S7 Edge because my wife didn’t like it over her S6 Edge but I still have the VR and waiting on mine in the mail. I’m selling my S7 Edge with the VR if you want it so I can get the HTC 10.

      • n0ahcruz3

        You know what let’s stop the discussion here and hope Apple releases an iPhone worth the upgrade and with wow factor.

  • Elias Chao

    Well, it’s way more likely that people would buy a $399/$499 phone rather than a <$649 one.