Apple has asked its manufacturing partners to produce at least the same number of iPhones as in 2021. Trying to maintain demand from wealthy buyers and reduce competition despite a global economic downturn.
Despite worsening smartphone market forecasts, the tech behemoth ordered 90 million iPhones from assemblers. In total, the Cupertino company expects to assemble about 220 million smartphones in 2022, which is roughly the same as last year. It is assumed that Apple is confident in its abilities, despite the fact that the global smartphone market fell by 9% in June alone, according to IDC experts, and is expected to fall by 3.5% in 2022.
While Android device sales continue to fall. The high demand for the iPhone stems from many buyers' desire to purchase high-end devices. Huawei actual disappearance from the relevant market contributes significantly to the company success. Simultaneously, according to some reports, Apple plans to "slow down" costs and hire new employees in some of its teams in 2023.
Apple can maintain strong iPhone sales in 2022, even as the market slows
According to Bloomberg, iPhone sales growth will remain in the "single digits" in the short to medium term. Accelerating inflation, European developments, and sanitary restrictions related to COVID-19 outbreaks in China have the potential to extend the product refresh cycle, affecting sales growth in fiscal 2022. However, Apple is actively planning the release of four new iPhone models that will outperform the 2021 models.
As of 2021, Apple has maintained its target for iPhone sales at 75 million from launch to the end of the year. In 2021, it raised the bar to 90 million, based on excess demand after the pandemic slowdown. The iPhone contract assembly companies posted record sales and profits in the last financial year.
The iPhone is expected to become the main driver of Apple sales this year. iPhone and iPad performed better than expected in the April-June reporting period. However, other products including Macs and wearable devices did not live up to the expectations. And services performance is one of the key growth drivers, which barely managed to reach planned levels. According to analysts at Piper Sandler, "the current macroeconomic environment has not had any meaningful impact on the iPhone business".
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