Apple Inc AAPL has urged suppliers to build at least as many next-generation iPhones this year as in 2021, Bloomberg reports. The iPhone maker is betting on its affluent clientele and declining competition to beat the global electronics turn.
Apple asked assemblers to make 90 million of its newest devices, on par with last year, anticipating the first new iPhone since the rollout of Covid vaccines would unlock additional demand.
Apple still looks to assemble 220 million iPhones in total for 2022, also about level with last year. This while China’s largest chipmaker Semiconductor Manufacturing International has warned about the bleak outlook.
The global handset market, which slid 9% in the June quarter, will likely shrink 3.5% in 2022 as per the IDC.
Apple’s confidence reflects consumer’s willingness to splurge on premium gadgets. Additionally, U.S.’s embargo on Huawei Technologies Co. helped erode competition in premium smartphones.
Apple assembler Hon Hai Precision Industry Co has also hinted at the iPhone maker’s resilience. Apple braced to launch four new iPhone models likely to beat the popularity of the 2021 models.
Analysts saw Apple grow its overall market share in China in 2022 as its loyal and affluent fans upgraded to new or budget-friendly 5G models. China’s discount shopping event in June could also see a recovery in smartphone shipments.
Apple’s peer Samsung Electronics Co, Ltd SSNLF recently launched its premium foldable smartphones keeping the prices intact from last year. Samsung aimed for foldable phone sales to surpass that of its past flagship smartphone, Galaxy Note, in the second half.
Price Action: AAPL shares traded higher by 1.31% at $170.70 on the last check Friday.