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Apple is confident about the “gold mine”

Sources from the supply chain said that Apple plans to assemble about 220 million iPhones this year, the number unchanged from 2021 despite the fluctuating smartphone market.

According to Bloombergthe worst inflation in decades, the war in Ukraine and supply chain disruptions could affect smartphone sales in 2022. Strategy Analytics predicts smartphone output for the year to fall. 2%, while TrendForce dropped estimated sales twice in a row.

Analysts from IDC and Bloomberg both predict iPhone production in 2022 can reach 240 million units. Of course, estimates are subject to change based on economic conditions and parts shortages in the coming months.

Apple can 'upstream' the smartphone market - Photo 1.

Apple is confident in iPhone sales in 2022 despite market turmoil. Photo: Bloomberg.

The smartphone market struggled at the beginning of the year when production was 11% lower in the first quarter, the worst drop since the pandemic broke out two years ago.

In April, Apple warned that the outbreak in China could cause sales to drop 8 billion USD in the second quarter. The travel restrictions of the country of billions of people make it difficult for the company to send leaders and engineers to supervise production. Rising fuel prices globally could also cause consumers to tighten their spending.

However, Apple is still confident in iPhone sales thanks to the number of loyal customers, the strength of the software and service ecosystem. One of Apple’s biggest competitors, Huawei, has lost its place in the market.

The iPhone 14 series is expected to boost Apple’s smartphone sales with many improvements such as a new hole-punch design (on the Pro series), an upgraded camera, and an additional 6.7-inch option for the standard version. In March, the company introduced the iPhone SE 2022 with 5G network, for those who want to own a powerful but cheap iPhone.

Before, Nikkei Reportedly, Apple has asked suppliers to accelerate the development of a high-end iPhone 14 model because the multi-month blockade policy in China has delayed the plan by about 3 weeks compared to usual. However, up to this point, the situation has not affected the iPhone 14 launch schedule.

Sources close to Bloomberg said that although the anti-epidemic blockade in China could cause great damage to Apple in the second quarter, the company still aims to control the situation soon. Apple’s main iPhone manufacturing unit, Foxconn, is maintaining most of the assembly line, including factories in Zhengzhou, central China.

Apple can 'upstream' the smartphone market - Photo 2.

The iPhone 14 series is expected to boost Apple’s smartphone sales this year. Photo: Jon Prosser.

Demand for smartphone ownership usually increases in the second quarter of each year, so the impact of the blockade order may not have a big impact. Apple suppliers can make up for the shortfall in output in the first quarter if the Chinese government opens soon, creating conditions to recruit more workers for the peak year-end period.

“This year will be divided into two halves. Geopolitical issues, component shortages, inflation, exchange rate fluctuations and the impact of Covid will continue to put pressure on the smartphone market in the first half of 2022. when it settles down in the second half of the year,” said Linda Sui, research director of the smartphone segment at Strategy Analytics.

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