According to a supply chain analysis conducted on the Apple iPhone (News - Alert) market by FBR Capital Markets, Apple is set to increase their 3G iPhone production output to 15 million units for the remaining quarters of 2008, in addition to the 2 million units of iPhone baseline model.

 

Apple (News - Alert) had unveiled version 2.0 of iPhone earlier in June at Apple Worldwide Developers Conference in San Francisco. The new iPhone is capable of connecting to the carrier’s third generation (3G) data networks.

 

FBR also revised its third quarter build volumes for other Apple products. The forecast for Apple iPods has been increased by 15 percent. According to FBR, the iPod market will witness about 35 percent growth from the second quarter. “The greater number of iPod Classics and Nanos built are expected to be partially offset by fewer Touch builds,” said FBR. It also hints at the launch of a lower priced Nano, which may change the trend of the iPod market.

 

For Mac notebooks and desktops, FBR increased the third quarter volume forecast up by 10 percent and 20 percent respectively, indicating an increase in volume builds for the two types of products by 35 percent and 20 percent respectively.

 

The slowing economy has not subdued people’s crave for Apple products, noted analysts.

 

“These checks also suggest Apple continues to knock the cover off the ball, that its product cycle momentum is ramping, and that any consumer spending malaise in the U.S. or Europe has yet to impact Apple-related product demand,” noted FBR.

 

According to FBR, the increase in the production of Apple products will create a positive implication in the chip market. Broadcom, Marvel Technology Group, Infineon Technologies, and Skyworks Solutions (News - Alert), are among the main chip suppliers that will benefit from the windfall, FBR said.

 

“The higher production levels reflect Apple's continued success in product innovation, sleek designs, attractive price points, and effective global deployment,” FBR said. “These checks confirm Apple's product cycle momentum continues to gain steam.”

During the launch of iPhone, Steve Jobs (News - Alert), chief executive of Apple, had announced a price slash for the basic models. The price reduction has greatly contributed for the increase in the demands for the earlier models, according to industry analysts.