Apple has asked suppliers to produce at least as many iPhones this year as in 2021, counting on its affluent clients and reduced competition to withstand the decline of the smartphone market, informs Bloomberg.
The tech giant has ordered 90 million next-generation iPhones from suppliers so far, the same as last year, despite worsening forecasts for the smartphone market. Apple still expects to produce about 220 million iPhones overall in 2022, also about the same as last year, according to one of the sources.
Apple’s closely guarded forecasts suggest the company is confident in its ability to withstand the decline in expenses on smartphones and other devices. Mobile device makers have begun freezing orders, China’s biggest chip maker warned on Friday. According to IDC forecasts, the global smartphone market, which fell by 9% in the June quarter, will shrink by 3.5% in 2022.
Shares of Apple suppliers in Asia rose due to this news. Taiwanese iPhone maker Pegatron Corp. jumped 3.6% in its biggest gain in five weeks, while Japan Display Inc. registered the largest growth in two months at 5%. TDK Corp. grew by 5.3%, and Murata Manufacturing Co. – by 3.7%.
At a time when Android devices are suffering from falling sales, higher demand for Apple’s new line can be attributed to a large customer base that is still willing to spend on premium gadgets, analysts say.