Apple reportedly raises TSMC chip orders on stronger than expected iPhone demand

Apple has reportedly tasked chip manufacturing partner Taiwan Semiconductor Manufacturing Co. with increasing production of A-series processors in response to strong demand for this year's iPhone lineup, particularly the relatively low-cost iPhone 11.

On the back of unusually high demand, TSMC is supposedly increasing quarterly output of Apple's in-house designed chips, including the A13 Bionic that was introduced with iPhone 11 and iPhone 11 Pro last September, Bloomberg reports, citing people familiar with the matter. Whether orders for the A11 system-on-chip design, which powers iPhone 8, were also raised is unclear.

The order hike arrives as Apple attempts to catch up with higher-than-anticipated demand for the latest iPhone series, according to the report. Sales of the handsets, especially the entry-level iPhone 11, have outperformed Apple's internal expectations since their launch last fall.

On Monday, market research from CIRP suggested iPhone 11 accounted for 39% of all iPhone sales during the quarter ending in December, more than doubling the 15% share achieved by iPhone 11 Pro and 11 Pro Max, respectively.

A rosy reception in China helped bolster iPhone's take of the worldwide market in the last quarter of 2019. Thanks to economic headwinds and an ongoing trade war with the U.S., China has been something of a sore spot for Apple over the past few quarters, but the current iPhone range has proved popular in the region. Whether Apple is able to maintain its momentum in Asia as competitors roll out faster, more powerful 5G handsets remains to be seen.

To address the China market, as well as U.S. and European consumers looking for cheaper alternatives, Apple is expected to introduce an affordable iPhone model in March. Tentatively dubbed "iPhone SE 2," the handset is rumored to take after iPhone 8 with a 4.7-inch screen and Touch ID home button. More modern internals like an A13 processor and current-generation camera are also expected for inclusion.

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5 Comments

F_Kent_D

said about 4 years ago

How about the need to produce more of the chip that’s rumored to go into the upcoming SE2? Im sure the 11 is selling well but the reality is the SE2 will be the phone getting the majority of the new production.

maestro64

said about 4 years ago

We should be as skeptical of this rumor as we are of the one that say the sky is falling and apple is cutting production.

As we all know these analyses get a data point and try to extrapolate backward to what it means. They are no better than your Corner Psychic trying to read tea leaves and predicting the future.

mjtomlin

said about 4 years ago

F_Kent_D said:

How about the need to produce more of the chip that’s rumored to go into the upcoming SE2? Im sure the 11 is selling well but the reality is the SE2 will be the phone getting the majority of the new production.

The “SE” is rumored to be a mix of old with new; an iPhone “classic” with a few new internals, including the latest SoC, the A13. That phone won’t be released until Spring (Northern Hemisphere). There’s still plenty of time to further ramp up production.

More than likely Apple will keep a non-FaceID model around at least a few more years. However, I don’t think it’ll be called the “SE”. I’m thinking there’s still “iPhone 8S“, “iPhone 9”, and “iPhone 9S” they could use as far naming any newer Touch ID based models.

The SE was a one-off model, I don’t think Apple will make a second model. The rumors are all just pointing to an upgraded iPhone 8, so why not call it the iPhone 8S?

I’m still holding out for another smaller device (I doubt we’ll ever see it again), but a 4.7” display, with a narrow top bezel, just tall enough to house Face ID. And an area equal in size at the bottom of the display for the newer “no-Home-button” gestures.

wizard69

said about 4 years ago

mjtomlin said:

F_Kent_D said:

How about the need to produce more of the chip that’s rumored to go into the upcoming SE2? Im sure the 11 is selling well but the reality is the SE2 will be the phone getting the majority of the new production.

The “SE” is rumored to be a mix of old with new; an iPhone “classic” with a few new internals, including the latest SoC, the A13. That phone won’t be released until Spring (Northern Hemisphere). There’s still plenty of time to further ramp up production.

More than likely Apple will keep a non-FaceID model around at least a few more years. However, I don’t think it’ll be called the “SE”. I’m thinking there’s still “iPhone 8S“, “iPhone 9”, and “iPhone 9S” they could use as far naming any newer Touch ID based models.

The SE was a one-off model, I don’t think Apple will make a second model. The rumors are all just pointing to an upgraded iPhone 8, so why not call it the iPhone 8S?

I’m still holding out for another smaller device (I doubt we’ll ever see it again), but a 4.7” display, with a narrow top bezel, just tall enough to house Face ID. And an area equal in size at the bottom of the display for the newer “no-Home-button” gestures.

The new SE will likely have an A13 but it might go with a 5nm chip simply underclocked compared to the new A14 iPhones to come. Why? TSMC has an almost endless supply of customers for their 7nm process. Demands from AMD are growing at a very fast rate so if they can convince Apple too move as much as possible to 5nm then more 7nm slots open up. From Apples perspective they will have a use for lower binned parts which reduces chip cost even more.

Yeah I know this is a stretch but I can see TSMC and Apple working together here to solve some of TSMC production demands. In the end some of those 7nm products from AMD will end up in Apple products anyways. All Apple would need to do is run the SE chip at a lower clock and maybe minus an execution unit or two. Beyond that the AI acceleration hardware in Apple new chips is key to providing services and Apps that Apple is putting a lot of importance on. It is a bit foolish of Apple to sell hardware that done reveal Apples new initiatives in the best light.

FileMakerFeller

said about 4 years ago

The 5G factor is something I didn't consider in the comment I left on the other article about the supposed new phone. I guess that weighs a little more in favour of the device being released: it's got known internals because all the parts are from existing phones and anything experimental has been slated for the future top-of-the-line devices.

But.

Why would they be using the A13 chip in a device that still has TouchID? If anything they'd run the A11 at a higher clock speed.

Why would they adjust the A13 in any way? If the revised chip would be used in more than one device, then, OK, that makes a little bit more sense, but they would only adjust its performance upwards in that case, not make it more limited.

I have many more questions that lead me to believe Bloomberg is wrong on this one.

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