We can only assume that the increase in component orders is to meet the demand. After all why would Apple bother increasing orders if they weren’t selling enough phones, right? Then again with the iPhone 5c, we heard reports that Apple ended up sitting on a lot of unsold inventory, so it could be a case of overconfidence.
The report says, “Apple has increased its part and component orders for iPhone 7 devices, with order visibility for the fourth quarter of 2016 to be 20-30% higher than expected, according to sources from Taiwan-based touch panel makers.” However it should be noted that if there is one thing all these reports have in common, it is that the iPhone 7 isn’t beating the iPhone 6s in sales.
It is possible that the initial demand for the phones are high, but overall they might not sell as well as its predecessor. DigiTimes notes that Apple is expected to ship as many as 80-84 million iPhones in the second half of 2016, but this is less than the 85-90 million that was shipped in 2015 for the iPhone 6s. A recent report quoted Pegatron’s chairman who said that the iPhone 7’s demand is beating forecasts which could have been low to begin with.