(Reuters) -Apple ( AAPL ) has told at least two suppliers to boost production of the entry-level model iPhone 17 by at least 30% after strong pre-orders last weekend, the Information reported on Friday, citing people familiar with the matter.
The development suggests more consumers than Apple ( AAPL ) anticipated chose the cheaper $799 iPhone 17 over the premium Pro models, which start at $1,099 and typically offer superior materials, cameras, processors and displays.
Apple ( AAPL ) this week asked Luxshare Precision, one of its two main iPhone assemblers in China, alongside Foxconn, to boost daily output of the standard iPhone 17 by about 40%, the report said.
Apple ( AAPL ) did not immediately respond to a Reuters request for comment.
Apple ( AAPL ) is betting its latest iPhone lineup, including a thinner "iPhone Air," will revive growth in the flagship product after years of lackluster sales, as consumers upgrade less frequently and new models offer only incremental improvements.
The entry-level iPhone 17, which went on sale Friday, now includes screen and camera upgrades once limited to the Pro models, narrowing the gap with Apple's ( AAPL ) higher-priced versions.
The shift underscores how even Apple ( AAPL ), long known for pushing customers toward its highest-margin devices, is facing more price-sensitive demand, raising questions about its ability to sustain growth through premium upgrades.
Analysts have said sales of lower-priced models could weigh on Apple's ( AAPL ) profit margins, even as they help the company defend market share.