Apple unlikely to increase iPhone production in 2022, here is why

Apple has asked suppliers to assemble roughly 220 million iPhone units this year — much like last year.

Apple is reportedly keeping iPhone production nearly the same in 2022 as last year, hinting that the global challenges in the smartphone industry are troubling the iPhone maker. According to Bloomberg, Apple has asked suppliers to assemble roughly 220 million iPhone units this year — much like last year — contrary to previous projections by analysts that predicted around 240 million units for this year.

While the stagnation in the production of the iPhones this year does not mean everything in the tech world is going to be haywire, Apple lowering its expectations for its star product means it is not exactly hopeful about the future of the industry. The iPhone is an influential product and its sales are a benchmark for several companies — some of which are very conspicuous about it, so the flatlining of the production is unlikely to offer any hope to them.

The smartphone industry got off to a rocky start in 2022. Factors such as global inflation, Russia’s war with Ukraine, exchange rate volatility, Covid-induced disruption, and continued supply chain issues have majorly impacted consumer behaviour, as well as the production and shipments of smartphones. And the situation is unlikely to improve anytime soon. “There is still room for downward revisions in the future,” said TrendForce in a news release, while, according to Strategy Analytics, shipments will tank as much as 2 per cent globally in 2022.

Apple previously warned about the troubles it might have to face this year and their impact on the production and sales of the iPhones. It cited Covid lockdowns prevalent in China — one of Apple’s biggest manufacturing hubs. But Apple’s predictions are not infallible. Previously, we have seen reports suggesting cuts in production after Apple overestimated shipment volumes of the iPhone (in the iPhone 13 mini’s case). Several times, Apple has been wrong about its predictions and who knows this time, too? Maybe people will like to buy the new iPhone and they are not really deterred by those factors.

It is easy to figure out why the next iPhone might manage to pull the crowd. Reports suggest the iPhone 14 Pro and the iPhone 14 Pro Max will ditch the notch in favour of a punch-hole setup, while there are several under-the-hood improvements expected. If these rumours hold any water, this time it will be very obvious who has a new iPhone and who does not — which was not necessarily true for the iPhone 13, which looked more or less like its predecessor. People who own an iPhone for flaunting purposes are likely to be affected.

But nothing is set in stone. It could go the other way, too. Renowned Apple analyst Ming-Chi Kuo said on Twitter that the challenges for the iPhone 14 models “will come from the demand side instead of the supply side.” In other words, he thinks Apple will be able to meet the supply requirements, but the demand for the new iPhone may be lower than those requirements.