Apple continues to cut iPhone production, the service segment promises to “carry the team”
With supply chain disruptions, epidemics in China and stopping sales of new products in the Russian market, Apple is reported to have continued to cut iPhone production in 2022. Another cut will be announced. apply in the near future. That shows that the services segment promises to be the main driving force for Apple’s profits.
According to an analyst at Loop Capital, Apple has cut iPhone orders by 9 million units, to 254 million units in 2022. This analyst also thinks there will be more cuts in the future. next time, to reduce to only 245 million units.
As for the low-cost iPhone SE line that Apple has high expectations for, Loop Capital’s analyst also said that the number of orders has been cut by 20 million units. Analyst Ming-Chi Kuo believes that Apple has cut iPhone SE orders by 25-30 million units, to only 15-20 million units in 2022.
It’s clear that selling more iPhones is becoming an increasingly difficult task for Apple, especially in today’s context. That’s why an analyst at investment firm UBS has said that Apple’s services segment promises to have more prospects.
Also according to a recent survey of 4,000 iPhone users in the US, the user retention rate of Apple services is very high. Subscribers to Apple Music, iCloud, Arcade and Fitness services also continue to grow.
What is special is that the percentage of high-end iPhone users, such as iPhone 12 Pro or iPhone 13 Pro, using Apple services is higher. Maybe that’s also the reason that Apple is about to launch a program to rent iPhone and iPad in the form of monthly payments, encouraging users to use new iPhone models at a reasonable cost.
If iPhone and iPad rentals really do launch, perhaps Apple will soon become a service company, rather than a company selling hardware devices.
Reference: 9to5mac
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