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Report: Apple is ready to start 5G iPhone production with the cheapest model first

Apple (NASDAQ: AAPL) is preparing to ramp up production of its newest 5G iPhone. However, it will reportedly not be able to hit the targeted 80 million unit threshold as the coronavirus pandemic disrupted the supply chain.

Apple doesn’t seem to have a similar problem with iPads, new Macbooks with their own CPUs, and a new device tracking tag called AirTag, however.

Smartphone with 5G letters above in front of globes

Image source: Getty Images.

All systems work

Nikkei Asian Review reports that while Apple has significantly narrowed the gap between orders and expected production, it is expected to hit 73 to 74 million iPhone units. Production is expected to begin in the next week or two, but at a reduced level until the beginning of October before really ramping up.

An unnamed supply chain manager quoted: “Final assembly of some models will still be in early October, but we are working to move production further as early as possible.”

That’s a month or more behind the tech giant’s typical schedule to start production in August for a September release, but well ahead of what analysts had originally forecast in the depths of the COVID-19 outbreak. The remaining amount of the iPhones will be delayed until early 2021.

According to the website, Apple will start production with the cheapest 5G iPhone model, which has a 6.1-inch OLED screen and dual rear cameras, which account for 40% of Apple’s orders.

Apple hasn’t had similar issues with its 27 million orders for new iPads as it prepares to launch its new Macbooks, which are the first to be unavailable Intel (NASDAQ: INTC) Chips since 2005. Nikkei Asian Review Plus, there was no issue with starting production at Airtag, which allows consumers to track non-Apple devices.

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