November 22, 2024

Apple Targets Production of 220 Million iPhones in 2022, Fewer Than Expected [Report]

Posted May 26, 2022 at 2:43pm by iClarified · 3610 views
Apple is targeting production of 220 million iPhones in 2022, about the same as last year and fewer than expected, according to Bloomberg sources.

The company is asking suppliers to assemble roughly 220 million iPhones, about the same as last year, according to people familiar with its projections, who asked not to be named as they’re not public. Market forecasts have hovered closer to 240 million units, driven by an expected major update to the iPhone in the fall. But the mobile industry has gotten off to a difficult start to the year and production estimates are down across the board.

Inflation, the war in Ukraine, supply chain shortages, and COVID lockdowns are expected to contract the smartphone market by as much as 2% this year. Apple has already warned that supply issues will impact sales by $4 billion to $8 billion this quarter.

It's likely that suppliers will try to make up for production shortfalls in the second half of the year barring further lockdowns.

“This year will be a tale of two halves,” says Strategy Analytics senior director Linda Sui. “Geopolitical issues, component shortages, price inflation, exchange rate volatility, and Covid disruption will continue to weigh on the smartphone market during the first half of 2022, before the situation eases in the second half.”

More details in the full report linked below...

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