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.
The Cupertino, California-based company declined to comment on the outlook, which could change depending on the economy and supply constraints in the coming months. Apple doesn’t disclose its production targets and stopped disclosing how many iPhones it sells in 2019.Apple already warned that supply problems will impact sales by US$4bil to US$8bil in the current quarter, largely because Covid-19 lockdowns are roiling production lines in China.
Apple is betting on resilient demand for its devices due to its comparatively wealthier customer base and the strength of its software and services ecosystem fuelling sales of hardware, according to the people. The company also just released an updated version of its lower-end iPhone SE that includes 5G, fueling an upgrade cycle for more budget-minded consumers.