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Apple Aspires to Keep iPhone Shipments Steady

Apple has asked suppliers to produce about 85 million iPhone 15 units this year, which roughly corresponds to the volumes recorded by the end of 2022.

Apple Aspires to Keep iPhone Shipments Steady

This information was published by the media concerning persons who are aware of the hidden details of communication between the technology giant and companies engaged in the production of goods of its product line. The firm strives to ensure a stable supply of smartphones during a difficult situation in the global economy and amid forecasts of a downturn in the market of the corresponding devices.

The media, citing sources who provided information under strict confidentiality conditions, since they are talking about plans that the brand does not designate in any way in the public space, report that the technology giant is considering increasing the cost of smartphones in the Pro category. If this intention is realized, Apple’s revenue will grow.

The position of the technology giant and the state of its affairs affect the global economy since many suppliers participate in the production of devices of this brand. This year, the company’s stock price has grown by almost 50%, reaching a record and historically significant level of $3 trillion.

Currently, Apple and its competitors exist in conditions of reduced demand for goods belonging to the electronics category. This situation is because large corporations and ordinary consumers refrain from purchasing against the background rising cost of products and global uncertainty in the economy. In the US, the Federal Reserve is forecast to raise interest rates again this week as part of the fight against inflation.

Samsung, Taiwan Semiconductor Manufacturing, and Foxconn Technology Group are monitoring Apple’s production plans, as the corresponding indicators affect their business growth prospects and profitability. In 2018, the tech giant announced that it would stop disclosing specific shipment numbers to redirect investors’ attention to a more predictable business, the App Store.

In 2023, Apple cut its sales forecast for future entry-level smartphones by about 2 million due to problems with the production of CMOS image sensors. This drop was offset by the addition of orders for more expensive models of the Pro category.

There was a minor hiccup with the new iPhone screens. The technology giant expects that this problem will be solved within one or two weeks and will not become a factor of significant impact on the entire production process.

The company’s plan to put about 85 million smartphones on the market this year is a departure from the target, which in previous years was fixed at 90 million units. At the same time, the stated goal was also not achieved earlier. In 2021, the technology giant’s plans were not fully implemented due to a shortage of chips. A year later, the achievement of the goal was prevented by the extension of restrictive measures due to the coronavirus in China, which provoked a failure of the production process.

Sales of Apple smartphones fell by 2% in the second quarter of this year, but the global market share of the tech giant has grown to 17% amid increased consumer demand for mobile phones worth $600 or more. Counterpoint analysts say that the company is currently at the peak of getting the benefit from its premium essence. In the markets of many countries, the brand’s share reaches record values. This is confirmed by India, where this indicator of the company grew by 50% year-on-year in the second quarter of this year.

As we have reported earlier, Apple Reportedly Uses AI Chatbot to Assist Employees.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.