Marginally stable plans to maintain production iPhone during 2022 h Apple Lossless Audio CODEC (ALAC),, as data at the level of demand is difficult in the shadow of the Ukrainian, supply chain disruptions, and inflation that has skyrocketed for decades.
The company is asking suppliers to assemble about 220 million iPhones, about the same as last year, according to sources close to the company, cited by Bloomberg.
In total, a demand of 240.000 devices is forecast for this year, which is encouraged by the expected significant upgrade of the iPhone in the fall. However, the difficult start of the year degrades estimates across the mobile range.
Shrinking smartphone market
Strategy Analytics estimates that the overall smartphone market will shrink by up to 2% in 2022, while TrendForce has twice downgraded its annual production forecast in recent weeks. Analysts at IDC and Bloomberg Intelligence are talking about about 240 million iPhones this year.
Apple has already warned that supply problems will affect sales by $ 4-8 billion this quarter, largely due to follow-up problems in China's production line due to lockdowns.
In addition, the entire tech industry is preparing for a slowdown in consumer spending as rising prices for fuel and materials increase the cost of daily commodities by upsetting family budgets.
The beginning of 2022 is difficult
The overall smartphone market started a difficult year, with shipments falling 11% in the first quarter, the biggest drop since the pandemic began. THE Xiaomi - the third largest smartphone maker in the world after Apple and Samsung - recorded for the first time a quarterly decline in revenue.
Apple is betting on its strong customer base and feels strong competitively now that it has "gone out of the way" Huawei which from No. 1 phone manufacturer notes a series of revenue reductions of six quarters.
Although Chinese lockdowns are set to hit Apple hard this quarter, the company expects to manage the turmoil, according to a source quoted by Bloomberg, as Foxconn Technology Group, Apple's lead iPhone maker, managed to keep up. most of its facilities in operation.
Demand for smartphones is usually declining in the second quarter, which may mean that the impact of the restrictions will not be so severe. The suppliers will try to cover any production deficit in the next period within the year, by hiring staff, provided that the lockdown in China is completely lifted.
According to Linda Louis, executive of Strategy Analytics, the market in 2022 will be characterized by a difficult first half, and improvement in the second.
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