Bloomberg reported that although Apple originally set a target of 240 million iPhone shipments for 2022, the company has lowered this figure to 220 million due to a combination of factors such as the supply chain and the epidemic.
This means there will be “zero growth” in iPhone sales this year compared to 2021. The first is a global chip shortage. Even though the company is known for its strong supply chain management capabilities, its production schedules are bound to be stymied occasionally.
The second is COVID-19-related shutdowns, and Apple’s supply chain has also been compounded by the scramble for already tight chip capacity in areas such as auto manufacturing. Specifically, Apple’s A-series or M-series SoCs, one of TSMC’s most important customers, were not affected.
However, in terms of peripheral components such as display drivers and power management chips, the company is still in a situation of short supply like its competitors.
The third reason is the decline in customers’ spending power. High-speed inflation combined with the global economic downturn caused by the outbreak of the Russian-Ukrainian conflict has led to a reduction in the savings of ordinary consumers, which was eventually passed on to the terminal retail business of the iPhone.
Apple has said revenue could fall by as much as $8 billion this quarter. Earlier rumors said that persistent problems in the company’s supply chain may prevent the new generation of iPhone 14 series smartphones from arriving as scheduled.
Even so, Apple is expected to hold a special launch event on September 13 and launch all four iPhone 14 models in one go, although individual SKUs may take longer to arrive (similar to the iPhone 12 release in 2020).
Finally, even if Apple’s iPhone sales were reduced to 220 million units this year, the company would still be the only major phone maker in the world to ship large-scale device shipments with a limited number of released models.