Preparations for the rollout of Apple Inc.'s latest iPhones are rippling through Asian economies, boosting revenues at component makers and helping underpin electronics exports from some nations.
The Cupertino, Calif., company is asking suppliers to manufacture up to 80 million units, about a third higher than initial orders last year for the iPhone 5S and 5C, according to people familiar with the matter. Apple is expected to launch two larger iPhone models in the fall and has been sourcing parts from across Asia ahead of the start of production in August, they say.
The region's iPhone bonanza shows why Apple is such an important presence in Asia. Few single tech manufacturers control such production volume.
Japan Display and LG Display Co. of South Korea have been the largest suppliers of displays, the most costly part of an iPhone. Catcher Technology Co. of Taiwan has produced the phone's metal casing, another expensive component. Largan Precision Co., also of Taiwan, made camera lenses. South Korea's Samsung Electronics Co. has furnished memory chips and microprocessors, the phone's computing brains.
Hon Hai Precision Industry Co. and Pegatron Corp., both Taiwanese-headquartered companies, previously have assembled iPhones in their Chinese factories. Apple also is leaning on some new suppliers, including Taiwan Semiconductor Manufacturing Co. The company began shipping microprocessors to Apple in the second quarter, say people familiar with the matter. None of the suppliers would comment on their relationship with Apple.