iPhones to account for 77% of total 5G smartphone production in 2021

• iPhone production for 2021 is expected to increases by 15.6% year on year to reach 229.5m units.
• New models to account for about 40% of Apple’s annual iPhone production.
• Apple is expected to continue the aggressive pricing strategy that it adopted for last year’s models in order to attract smartphone buyers.

Apple’s iPhones are expected to account for about 77 per cent of the total annual production of 5G smartphones in 2021, making them the market leader in this segment and representing a drastic increase from 39 per cent in 2020.

According to research firm TrendForce, the tight supply of certain components due to complications resulting from the Covid-19 pandemic remains Apple’s primary production-related challenge but iPhone production will unlikely be drastically affected.

The tech giant’s iPhone production for 2021 is expected to increases by 15.6 per cent year on year to reach 229.5 million units.

Total smartphone production is expected to increase by 7.3 per cent to 135 billion compared to 1.25 billion last year.

The tech giant’s iPhone 13 models, which are to be launched on Tuesday, are expected to account for about 37-39 per cent of Apple’s annual iPhone production.

In view of the lacklustre sales performances of the iPhone 12 mini, the small form factor is expected to account for less than 10 per cent of total iPhone 13 production, since Apple will focus its sales efforts on the other three models.

Aggressive pricing strategy

TrendForce indicates that the global economy, markets, and personal incomes are all still experiencing the effects of the Covid-19 pandemic, which has also led to price hikes for electronic components and transportation services, thereby compounding Apple’s difficulties in setting retail prices for the new iPhone models.

Apple is expected to continue the aggressive pricing strategy that it adopted for last year’s models in order to attract smartphone buyers, raise its revenue from services via increased handset sales, and make up for the aggressive prices via increased service revenue.

Technical specifications:

The Pro model of the iPhone 13 is expected to include 1TB storage capacity as an optional upgrade.

Other improvements over previous models include the adoption of A15 processors manufactured with TSMC’s 5nm+ process technology.

All four iPhone 13 models will feature flexible AMOLED + On-cell designs for their display panels, while the Pro series will also feature a 120Hz refresh rate as well as LTPO technology for reduced power consumption.

Furthermore, all four models’ primary cameras will be equipped with sensor shift image stabilization. The Pro model, in particular, will have its ultra-wide camera upgraded to a 6P lens, with the addition of autofocus capability as well.

Much like the iPhone 12, LiDAR functionality is available only for the Pro model of the iPhone 13 lineup.