Apple Inc. is set to produce approximately 85 million units of the iPhone 15 this year, maintaining stable shipments despite global economic turmoil and an expected decline in the overall smartphone market. The company’s decision comes as it seeks to boost revenue by potentially increasing the prices of the Pro models.
Headquartered in Cupertino, California, Apple has reportedly instructed its suppliers to manufacture 85 million iPhone 15 units, a quantity similar to the previous year’s production. The move is particularly significant considering the challenges posed by the ongoing economic uncertainties and dampening demand for electronics, including smartphones and computers.
The Pro models of the iPhone 15, known for their premium features and capabilities, may witness a price hike as Apple explores avenues to increase overall revenue. However, specific pricing details have not been disclosed publicly.
As the world’s most valuable company, Apple’s decisions have a far-reaching impact on the global economy, with implications for numerous suppliers and millions of job opportunities in countries like the US, China, Vietnam, and India. With its shares experiencing an impressive 50% surge this year, Apple’s market capitalization has reached a staggering $3 trillion.
Apple’s production schedule is closely watched by major corporations such as Samsung Electronics Co., Taiwan Semiconductor Manufacturing Co., and Foxconn Technology Group, who rely on iPhone business to drive growth and profitability. While Apple stopped disclosing specific shipment numbers in 2018, the company’s production targets remain a subject of interest and speculation in the industry.
However, Apple has not been immune to challenges in its production plans. This year, the company had to revise its projection for entry-level smartphones, reducing it by approximately 2 million units due to issues related to CMOS image sensors. Nevertheless, the company managed to offset this decline by increasing orders for higher-priced Pro models, as per Bloomberg’s report.
Additionally, a minor issue with the new iPhone screens has been reported. Nevertheless, Apple is expected to resolve the matter promptly, and it is unlikely to have a significant impact on overall production.
Apple’s forecast of 85 million units for the iPhone 15 is slightly below the initial shipment target of 90 million set in the previous two years. Factors such as chip shortages in 2021 and extended Covid controls in China in 2022 led to production disruptions, resulting in the company falling short of those targets.
With the global economic landscape facing uncertainty and inflationary pressures affecting consumer behavior, Apple’s strategy to maintain stable shipments and explore price adjustments for its Pro models will be closely monitored by investors, consumers, and competitors alike. As the smartphone market continues to evolve, Apple’s decisions could influence industry dynamics and set the tone for future product strategies.