A new report claims that Apple has lowered its target for iPhone sales this year amidst increasing inflation and supply chain disruptions. The company had made a similar decision in 2021 when it slashed iPhone 13 production by around 10 million units due to the ongoing chip shortage. However, the latest development is still unexpected, as an earlier report claimed that the company was planning to increase its iPhone shipments to around 300 million units this year. The iPhone is Apple‘s biggest and most profitable product, and the company typically sells hundreds of millions of them each year.

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Apple is expected to launch the iPhone 14 series in September with some significant design changes, hardware upgrades, and new features over the iPhone 13 lineup. According to long-standing rumors, Apple will launch four iPhone 14 models in 2022, but unlike the last two years, the ‘mini’ variant will be missing in action. Instead, the company is said to be working on launching four big-screen models, including the iPhone 14, iPhone 14 Max, iPhone 14 Pro, and iPhone 14 Pro Max. While the iPhone 14 and iPhone 14 Max will be the standard options, the two Pro models are rumored to offer faster hardware and a new punch-hole camera design.

Related: Why The iPhone 14 Could Feature An Always-On Display

According to Bloomberg, Apple is not looking to increase iPhone production this year, despite the impending launch of the iPhone 14 series with new features and a modern design. Instead, the company is reportedly telling its suppliers to assemble around 220 million iPhones, about the same as last year. Analysts and industry watchers had expected the number to be closer to 240 million, which means the actual number might be around 20 million less than the consensus market estimate. As for the reason behind the cutback, the report claims that the increasing inflation, war in Ukraine, and Covid-related supply disruptions have combined to create a perfect storm, threatening overall sales for the entire industry.

Smartphone Sales Could Go Down In 2022


As pointed out by the report, multiple analytics firms had predicted that the smartphone market will contract in 2022, although the forecast for iPhone sales was still strong up to this point. However, the latest report now suggests that Apple might suffer the same fate as some of its competitors, and have a flat year with zero growth in global shipments. While Apple declined to comment on the current report, the company had earlier stated that it expects overall sales to be lower by $4-$8 billion during the current quarter, largely on account of stringent Covid-19 lockdowns in China.

According to Strategy Analytics, global smartphone shipments fell 11 percent to 314 million units in Q1 2022, with all major companies barring Apple seeing lower sales. While Apple managed to grow its iPhone sales by about o.6 percent during the quarter, Samsung, Xiaomi, Oppo, Vivo, and other major vendors experienced significant de-growth. If the latest report is anything to go by, the slowdown is likely to continue for the rest of the year. However, Apple might not be as badly affected as some of the other vendors, thanks largely to its relatively wealthier customer base and the increasing popularity of its proprietary software and services ecosystem.