Apple reportedly increased orders by 10 per cent for components for its new iPhone models scheduled to be released on Wednesday, according to supplier sources in Taiwan.

The boost indicates Apple remains upbeat about the replacement market for new iPhones from existing users. DigiTimes reported that Apple previously predicted that shipments of new iPhones in the second half would reach only about 60 per cent of iPhone shipments in the same period last year.

DigiTimes noted that some suppliers remained concerned that the boost in orders would be short lived, with component orders softening in Q4.

The upward revision comes just days after IDC forecast worldwide smartphone shipments to increase just 1.6 per cent this year to 1.46 billion units – down from 10.4 per cent growth last year. The slowdown is mainly attributed to the decline expected in developed markets, with growth reliant on consumers replacing existing handsets rather than seeking new users.

The Cupertino-based company, which reported a second straight quarter of falling profits and revenue, has seen continued weakness across most of Asia this year, with revenue in Greater China plunging 33 per cent to $8.8 billion in its fiscal Q3 ending 30 June. Sales across the rest of Asia (except for Japan) fell 20 per cent to $2.4 billion.

China is Apple’s second largest market and the world’s largest smartphone market. In Q2 Apple dropped to fourth in the China smartphone vendor rankings behind Huawei, according to Kantar Worldpanel ComTech.