Apple may have lowered production forecast because iPhone 14 is a modest upgrade

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Even though the worst days of lockdown are thankfully behind us, 2022 was a tough year on many fronts. Economic uncertainties, the war in Ukraine and supply-side problems are expected to weigh on phone production. Apple is also expected to are producing fewer iPhones than analysts had predicted, and while some of that can be attributed to the aforementioned external factors, some of it comes down to the fact that iPhone 14 will not be a significant upgrade over the iPhone 13.
That’s according toBloomberg’s Mark Gurman. When asked about his thoughts on Apple’s rumored iPhone production target for 2022, Gurman agreed that faltering consumer spending and supply chain disruptions likely played a role, but added that the company may have lowered expectations because the iPhone 14 doesn’t sound like a game changer.
Apple reportedly has a flat production target of 220 million for 2022, as analysts expected the company to do producing 240 million units. Total smartphone shipments are expected to shrink by 2 percent this year. Even rival Samsung has apparently decided to reduce production by 10 percent.
Apple had previously warned that supply cuts could impact sales by $4 billion to $8 billion this quarter. This can be attributed to another round of lockdown in China, where a large percentage of production is concentrated.

The company has a reputation for being more in control of its supply chain than its competitors, suggesting another factor is at play: lower demand. Gurman says the iPhone 14 will be more of an S upgrade, meaning it will be an incremental upgrade over last year’s models.

For starters, the new phones will be powered by a chip based on a manufacturing technology the company has been using for the past two years. While the iPhone 14 Pro and Pro Max are expected to replace the notch with pill-and-hole cutouts, the overall look is expected to remain the same. These variants will also reportedly include a new 48MP camera, making them the best camera phones of the year.
Gurman believes most consumers want a new design, which is unlikely to be released until 2023. What the new design could entail, look no further than leaked renders that surfaced last year. Granted, those renders were rumored to be for the iPhone 14, but it now appears that that design was actually intended for the iPhone 15. If that’s really the case, the iPhone 15 may have a thicker chassis, a flat camera setting, circular buttons, and redesigned speaker and microphone grilles.

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