It looks like Apple plans to make the same number of iPhones in 2022 as it will in 2021, according to a new supply chain report: about 20 million less than what analysts had expected. AppleInsider now reports that despite the iPhone being the only smartphone to see sales increase in the first quarter of this year, Cupertino will not be placing any more iPhone orders.
Sources state that Apple will make about the same number of iPhones this year as last year
Bloomberg reports: that Cupertino seems to have decided to take a more conservative stance this year, adding that the year could be quite challenging for the smartphone market. Sources claim that the tech giant has asked suppliers to assemble about 220 million iPhones, which is about the same as last year. That’s about 20 million less than market forecasts, which focused on some closer to 240 million units, given that a major update to the iPhone is expected in the fall. However, as we mentioned above, it seems that the mobile technology industry is going through some challenging times. This more or less means that production estimates are falling not just for Apple, but for all players in the mobile market. The problems that will plague the beginning of 2022 cannot be underestimated. The Bloomberg report underlines that the war in Ukraine, the worst inflation in decades and supply chain problems are all factors that could contribute to lower sales in the mobile technology industry in 2022.
It seems that statistical predictions agree. Strategy Analytics predicts that the total number of smartphone shipments will fall by about 2% in 2022and TrendForce has lowered its full-year production forecast twice in the past few weeks.
As some of you may know, Apple stopped announcing its production targets in 2019 and the company does not publish how many iPhones it sells.
However, Cupertino has warned that there will be an effect from the recent pandemic-related lockdowns that have taken place in China. Apple has stated that the situation could impact sales by $4 billion to $8 billion in the current quarter.
In addition, the entire tech industry expects consumer spending to slow as many daily necessities become a bit more expensive due to rising fuel and material prices.
Overall smartphone market to a slow start to the year
Shipments are down 11% in the entire mobile tech market in the first quarter, and this is the worst number since 2020. Even Xiaomi, a company with record-breaking growth, saw its first quarterly revenue decline earlier this month. booked. But is Apple really at risk from all this? Probably not, as Apple faces even less competition (you know, Huawei used to be very aggressive and was No. 1 in sales, but now locked out of markets), and demand for Apple products tends to be high due to the richer customer base and the software and services ecosystem.
Plus, Apple is gearing up for a tempting iPhone 14 release. As you probably already know, the four flagship models are expected to bring a bigger update than what the iPhone 13 series brought to the table. Rumors have it that better cameras for the iPhone 14 series, a different notch design for the Pro models, and features like satellite text messaging.
That said, we’ll have to wait and see how things pan out for Apple (and the rest of the market).