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

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