Apple to produce 85 mn iPhone 15 units despite global economic crisis: Report

Despite the turmoil in the global economy and an anticipated decline in the overall smartphone market, Apple Inc., headquartered in Cupertino, California, is determined to maintain stable shipments of the iPhone 15. According to Bloomberg, the company is contemplating increasing the price of the Pro models, which could contribute to a rise in overall revenue. However, the specific targets are not public information.

As the world’s most valuable company, Apple’s influence extends across the global economy, impacting thousands of suppliers and generating employment opportunities for millions in countries such as the US, China, Vietnam, and India. With a remarkable surge of nearly 50% in its shares this year, Apple’s market capitalization has now reached an impressive $3 trillion.

The report adds that Apple and its competitors are facing significant drops in demand for electronics, including smartphones and computers, due to corporations and consumers delaying purchases amid rising prices and economic uncertainty. In the US, the Federal Reserve is likely to implement another interest rate increase this week as a measure to combat inflation, while China’s economy, the world’s second-largest, experienced a slowdown in the second quarter.

Due to its significant influence, Apple’s production schedule attracts close attention. Major corporations such as Samsung Electronics Co., Taiwan Semiconductor Manufacturing Co., and Foxconn Technology Group rely on iPhone business to boost their growth and profitability. In 2018, Apple made the decision to stop revealing specific shipment numbers, partly to redirect investor attention towards more predictable ventures like its App Store.

During this year, Apple had to reduce the projection for its upcoming entry-level smartphones by approximately 2 million units due to a production obstacle related to CMOS image sensors. However, the company managed to offset this decline by placing additional orders for higher-priced Pro models, as per the report from Bloomberg.

A minor issue with the new iPhone screens has been reported, but it is expected to be resolved within a week or two, and it is not anticipated to significantly affect overall production, according to report. 

This year, Apple’s forecast of 85 million units is slightly below the initial shipment target of 90 million set in the previous two years. The company couldn’t meet those targets due to a chip shortage in 2021 and extended Covid controls in China in 2022, which resulted in production disruptions.

Updated: 24 Jul 2023, 06:56 PM IST