Apple has asked suppliers to build at least as many of its next-generation iPhones this year as in 2021, counting on an affluent clientele and dwindling competition to weather a global electronics downturn.
The technology giant is telling its assemblers to make 90
million of its newest devices, on a par with last year, despite deteriorating
projections for the smartphone market, according to people with knowledge of
the matter.
The company still expects to assemble roughly 220 million
iPhones in total for 2022, also about level with last year, according to one of
the people.
Apple's projections, a closely guarded secret, suggest that
it is confident about weathering a slump in spending on smartphones and other
devices. Mobile device makers have begun freezing orders, China's largest
chipmaker warned on Friday (Aug 12). The global handset market, which slid 9
per cent in the June quarter, is expected to shrink 3.5 per cent in 2022,
research and consultancy firm IDC has forecast.
Shares of Apple suppliers in Asia rose on the news.
Taiwanese iPhone assembler Pegatron jumped as much as 3.6 per cent in its
biggest gain in five weeks, while Japan Display logged its biggest two-month
rise of 5 per cent. TDK rose as much as 5.3 per cent and Murata Manufacturing
gained 3.7 per cent.
At a time when Android devices are suffering, the stronger
demand for Apple's new line-up stems from a customer base still willing to
spend on premium gadgets, the people said. The virtual demise of Huawei
Technologies has also eroded competition in high-end smartphones.
Hon Hai Precision Industry, which puts together most of the
world's iPhones, hinted at Apple's resilience when it said this week that sales
of its smart consumer electronics products should be little changed in 2022.
The world's most valuable company has promised to be
disciplined about spending as economic and geopolitical uncertainties cloud the
outlook for 2022 and beyond. Bloomberg reported last month that Apple would
slow spending and hiring across some of its teams in 2023.
This week, a cooler-than-anticipated United States inflation
reading buoyed hopes that interest rate hikes will not be as aggressive as
thought. But market observers cautioned that the economic outlook remained
bleak.
Bloomberg Intelligence analyst Anurag Rana said:
"Apple's near- and mid-term percentage sales growth will likely remain in
the mid-single digits... Spiking inflation, war in Europe and lingering
Covid-19 restrictions in China could elongate the product refresh cycle,
hurting fiscal 2022 sales growth by 2 per cent to 3 per cent versus consensus
of US$394 billion (S$539.6 billion).
"Apple's overexposure to China for manufacturing is a
major concern, and any disruptions due to either parts shortages or
geopolitical issues could seriously hinder its ability to fulfil demand."
Still, Apple is soldiering ahead with plans for its marquee
device, which accounts for about half of its revenue and is the main gateway to
profitable services.
Apple is set to launch four new iPhone models that it hopes
will break more ground than 2021 versions, Bloomberg News has reported. The
iPhone 14 Pro models are expected to include a much-improved front-facing
camera, a new rear-camera system that includes a 48-megapixel sensor, thinner
bezels and a faster A16 chip, among other features.
Before 2021, Apple had maintained a consistent level in
recent years of roughly 75 million units for the initial run of a new device
until the end of the year. It upgraded its target for 2021 to 90 million.
0 comments:
Post a Comment