It looks like Apple is planning to manufacture the same amount of iPhones in 2022 as in 2021according to a new supply chain report: roughly, about 20 million less than analysts had expected. AppleInsider is now reporting that although the iPhone is the only smartphone to see sales rise in the first quarter of this year, the Apple-bitten firm won’t place more iPhone orders.
Bloomberg reports that Apple appears to have decided to adopt a more conservative stance this yearadding that the year could be quite difficult for the smartphone market. Sources say the tech giant has asked its suppliers to assemble around 220 million iPhones, about as many as last year.
This figure is about 20 million lower than the market forecast, which had been expecting a number closer to 240 million units, given that a major iPhone update is expected in the fall. However, as mentioned, it looks like the mobile tech industry is going through a tough time. That means production estimates are down not just for Apple but for everyone in the mobile phone market.
The problems that have arisen since the start of 2022 are not to be underestimated. The Bloomberg report points to the war in Ukraine, the worst inflation in decades, and supply chain issues as factors that could contribute to lower sales in the mobile technology sector in 2022.
It seems that the statistical predictions abound in this direction. Strategy Analytics predicts that overall smartphone shipments will decline by around 2% in 2022, and TrendForce has already downgraded its full-year production forecast twice in recent weeks.
As some of you may know, Apple has stopped disclosing its 2019 production targets, and the company doesn’t release how many iPhones it sells.
However, Apple has warned that there will be an effect of the recent pandemic-related shutdowns that have taken place in China. Apple said this situation could impact sales in the current quarter by $4 billion to $8 billion. To top it off, the tech industry as a whole expects consumer spending to slow, as many basic necessities become a bit more expensive due to rising fuel and material prices.
Shipments fell 11% in the first quarter across the mobile tech market, and that’s the worst numbers since 2020. Even Xiaomi, a record-growing company, posted the first-ever decline in quarterly revenue.
Apple is not in danger
But is Apple really in danger in all of this? Probably not, given that Apple faces even less competition, and demand for Apple products is generally high due to the richer customer base and ecosystem of software and services.
And to top it off, Apple is gearing up for a mouth-watering iPhone 14 release. As you probably already know, the four flagship models are expected to bring a bigger upgrade than what the iPhone 13 series brought on Table. Rumors point to better cameras for the iPhone 14 series, a different notch for the Pro models, and features like satellite text messaging.
All that said, we’ll have to wait and see how things pan out for Apple (and the rest of the market).