Apple is increasing production on the standard iPhone 17 due to unexpected demand for the device, reports The Information. Following a strong pre-order weekend, Apple told two suppliers to increase daily iPhone 17 output by at least 30 percent.
The iPhone 17 is priced starting at $799, and it is $200 cheaper than the iPhone Air. It's $300 less than the iPhone 17 Pro, which now starts at $1,099. This year, the iPhone 17 got "Pro" features with the addition of a 120Hz refresh rate and Always-On display technology, plus it is the same size as the 17 Pro at 6.3 inches.
According to The Information, Apple's decision to increase iPhone 17 production suggests that the iPhone 17 Pro models are not selling as well as usual this year. If that's the case, it could have consequences for Apple's gross margin and September quarter revenue.
Ahead of the iPhone 17 launch, Apple allocated 25 percent of its iPhone 17 production to the standard model, 10 percent to the Air, and 65 percent to the Pro and Pro Max, as those are typically Apple's best-selling devices.
The standard iPhone and the two Pro models have been staples in Apple's iPhone line, but the company has struggled to find a fourth model that draws consumer interest. It started with the "mini" iPhones that were smaller than the iPhone 17. Those didn't sell as well as expected, so Apple moved on to the "Plus" size, offering standard iPhone features paired with a larger display. The Plus iPhone sales were also disappointing, so Apple has now moved to the ultra thin Air, and the company is hoping that a fresh design will lure customers into upgrading.
The iPhone Air is not yet available in China because of regulatory issues with the eSIM-only design. As a result, more Chinese customers may be opting for the standard iPhone 17.
Apple updates its device forecasts on a weekly basis, so the mix of iPhone models that suppliers are asked to prioritize could shift.
