Apple Is Ordering More A13 Processors From TSMC to Meet iPhone 11 Demand

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Apple is reportedly ordering more A13 processors from chipmaker TSMC to help meet strong iPhone 11iPhone 11 Pro and iPhone 11 Pro Max demand. As per the latest reports, Apple's newest smartphones are selling like hotcakes around the world, especially in China, which has led to increased demand in production from suppliers.

Taiwan Semiconductor Manufacturing Co. (TSMC) manufactures A13 processors for Apple to use in iPhone 11 and iPhone 11 Pro. To meet increased demand, Apple has asked its suppliers to increase their component production.

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Although Apple does not share official sales figures anymore, Tim Cook had confirmed that iPhone 11 was off to a tremendous start during Apple's fourth-quarter earnings. Despite the lack of 5G, iPhone 11 has been very well received in places like China and the United States, two of Apple's biggest markets. In China, Apple finally saw good sales again, and sold 10 million iPhone 11 units in the first 2 months. The $50 reduction in iPhone 11's price has helped a lot to encourage more users to upgrade.

Apple is also expected to order more chips from TSMC as the company is expected to start production of iPhone SE 2/iPhone 9 in February. The smartphone is expected to have the same design as iPhone 8, but with the latest camera upgrades and A13 processor. It will be aimed at the low-cost market and is expected to be a massive success.

TSMC has shown growth in its recent earnings report. The company has also been in the news recently for facing pressure to relocate to the United States, due to concerns by the U.S. government.

Recent data has also shown that the iPhone 11 was a smash hit during the holiday season in the United States. The cheapest iPhone 11 model, which costs $699, made up for 39 percent of the sales, followed closely by iPhone XR. Despite being an older model, iPhone XR continues to do well and is one of the most popular smartphones selling around the world. In terms of iPhone 11 Pro and iPhone 11 Pro Max, customers have been buying the 256GB and 512GB variants, which helps increase the average selling price for Apple.

This bit of news also puts to rest the fear-mongering that iPhone 11 is not selling well. All eyes are now on iPhone 12, which is expected to ship with 4 models in 2020. It will also have an iPhone 4 inspired thinner design, OLED on all models, 5G, A14 Bionic chip and 6GB RAM on top-end variants.  An ultra-premium iPhone 12 Pro Max model is also rumoured to be part of the next-generation models.

via Bloomberg.

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