Apple expects to maintain strong iPhone sales in 2022 despite overall smartphone market slowdown

Apple asks suppliers to make at least 90 million iPhone units, hoping to maintain demand from wealthy buyers and reduce competition - even against the backdrop of a global economic downturn. In total, the Cupertino company expects to assemble approximately 220 million smartphones in 2022, about the same level as last year. It is assumed that Apple is confident in its abilities despite the fact that, according to IDC experts, the global smartphone market fell by 9% in June alone, and should decline by 3.5% in 2022.

While sales of Android devices continue to suffer, the strong demand for the iPhone stems from the desire of many buyers to purchase premium devices. The actual disappearance of Huawei from the corresponding market contributes a lot to the company's success. At the same time, according to some reports, Apple intends to "slow down" the costs and hiring of new employees in some of its teams in 2023.

In the short to medium term, iPhone sales growth in percentage terms will remain at the “single digit” level. Accelerating inflation, developments in Europe, and sanitary restrictions related to the COVID-19 outbreaks in China have the potential to extend the product refresh cycle, impacting sales growth in fiscal 2022. However, Apple is actively preparing to introduce four new iPhone models that are expected to perform better than the 2021 versions.

Until 2021, Apple maintained the iPhone sales target at 75 million units from the time of the premiere until the end of the year. In 2021, she raised the bar to 90 million, counting on additional demand after the recession of the pandemic. iPhone contract assembly companies posted record sales and profits last fiscal year.

It is expected that this year the iPhone will become the main driver of Apple sales. In the April-June reporting period, iPhone and iPad performed better than expected, although other products, including Macs and wearables, fell short of expectations, and service performance, by design, one of the key growth drivers, barely managed to reach the planned level. . According to analysts at Piper Sandler, "the current macroeconomic environment has not had a significant impact on the iPhone business."

Source: www.bloomberg.com