Apple asked suppliers to build at least 75 million 5G iPhones for release later this year, about in line with production volume a year ago, according to unnamed sources that spoke to Bloomberg.
There will be four iPhone 12 models released in October with 5G speeds and a wider choice of screen sizes. Several researchers are reporting there will be a dark blue model.
While some experts have expected 5G connectivity to be the big draw or even a new, faster and more power efficient A14 processor, some Apple testers called the new 6.7-inch display—Apple’s largest ever-- on one of the four models one of the most notable improvements.
Bloomberg also reported that a few testers have found that some of the current 5G networks are not improving connection speeds much.
IDC analyst Ryan Reith said he has tested many 5G phones and noticed the speed improvement can be “unnoticeable at most times” unless there is hard-to-find millimeter wave network coverage. “It’s safe to say that consumers are not yearning for faster speeds if it comes with a tradeoff” of higher cost or lower battery performance, he said via email.
“I do think this iPhone upgrade cycle will be strong, but I don’t think it will be driven by iPhone buyers feeling as though they need 5G over their current 4G,” Reith added. “It will more likely be driven by their current need for an upgrade or some other device enhancements that come along with the new iPhone lineup.”
Regardless of whether buyers are looking to buy an Android or iPhone smartphone, “one of the biggest factors in weak consumer demand is that most are happy with their current data speeds,” Reith added “If anything, they would like what they currently have, but cheaper.”
Reith said he’s sure that 5G speeds will improve as networks continue to ramp up, but he said smartphone prices and a challenging economy will possibly be more important considerations for buyers.
Analyst firm IDC last week said that consumer demand for 5G smartphones is “very low” which is expected to result in a drop in the 5G smartphone average selling price of more than $800.
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The four new iPhones will come in two basic and two high-end models, all with OLED displays. There will be two regular iPhones with a new 5.4-inch display and a 6.1-inch display, while the iPhone Pro devices will come in displays of 6.1-inch or 6.7- inch. The larger Pro will have the LiDAR camera seen on the lastest iPad Pro to support augmented reality apps.
The lower-end phones will ship sooner than the Pro devices, according to the Bloomberg sources.
Bloomberg described the Apple order of 75 million 5G iPhones as a sign that demand for the product is holding up in the midst of the pandemic and recession.
Apple Insider reported Apple could sell up to 68 million 5G models in 2020, citing research from Digitimes.
By contrast, overall smartphone shipments are projected to drop nearly 10% in all of 2020, according to IDC after three years of declines. Shipments will total 1.2 billion units in 2020, the analyst firm said. Growth will resume in 2021 and reach pre-COVID levels in 2022.
In the first quarter, Apple ranked third in smartphone shipments behind leader Samsung and Huawei, according to Omdia.