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Apple Expects to Ship 20 Million Fewer iPhones in 2022, as Chip Supply, COVID-19-Related Issues, More Eat Into Company’s Progress

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Apple could experience a slump in iPhone sales due to several factors at play, and because of that, a new report states that the company has asked suppliers to put a slight brake on production.

New Production Target Means There Would Be Zero Growth on the iPhone Side Compared to 2021

Initially, Apple’s shipment target for 2022 was 240 million, but the current situation has taken a slight detour, according to the latest information published by Bloomberg. The company’s latest shipment target has been reduced to 220 million, meaning that there will be zero growth in terms of iPhone sales if we compare 2022 to 2021. There have been several obstacles in Apple’s path that have prevented this iPhone sales growth.

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One of them is the global chip shortage. Despite having a robust supply chain, Apple is not immune to these shortages, with production occasionally receiving a hampering. Additionally, COVID-19-related production shutdowns, coupled with other applications requiring an increasing number of chips, such as automakers, has made things difficult for Apple’s suppliers. Going deeper, the situation is not related to requiring technology to mass produce A-series or M-series SoCs, but other parts, such as display drivers and power management chips, are in short supply.

The third reason is a reduction in the customer’s spending power. Rapidly growing inflation, coupled with global effects due to Russia’s invasion of Ukraine, has resulted in reduced savings for the average buyer, which will undoubtedly eat into iPhone sales. Apple has said previously that its revenue for the current quarter could go down by as much as $8 billion, and according to a previous rumor, the ongoing problems in the company’s supply chain means one iPhone 14 might not arrive on schedule.

This means that though Apple may hold an event on September 13 and will likely announce all four iPhone 14 models, one of them could be officially released much later, mirroring a similar scenario back in 2020 when the iPhone 12 family was announced. However, even with the production target reportedly witnessing a cut of 220 million, Apple would be the only smartphone vendor in the world to ship a boatload of units while having released a limited number of models, so there is some positive news out of all this.

News Source: Bloomberg

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