iPhone 14 hit by slowdown? Apple set for life in the fast lane

Reports of iPhone 14 being hit by a general slowdown in the global economy, as well as China and Taiwan tensions, are everywhere. However, the numbers are proving that the Apple iPhone 14 is all set for a life in the fast lane. Apple remains confident of its iPhone 14 sales as it has asked suppliers to manufacture 90 million units of the smartphone, same as iPhone 13 in 2021, according to reports. This is a bold move given that the financial breakdown of the previous quarter revealed that the global smartphone market experienced slowdown as shipments declined by 9 percent. But despite the concerns, Apple seems to be betting big on its upcoming smartphone after capturing 17 percent of the market share in Q2 2022-23.

According to a Bloomberg report, Apple is expected to manufacture a total of 220 million iPhone devices in 2022. This appears to be on par with the company's manufacturing rate of 2021. Based on the information from the sources Bloomberg spoke with, it appears that Apple's belief emerges from the strong demand of its premium gadgets from its customer base. The company believes that it can weather the slowdown due to that.

Apple believes iPhone 14 sales will remain similar to iPhone 13

Prior to 2021, new iPhones manufactured were fixed at 75 million, based on a report by MacRumors. The year 2021 was an important year for Apple as it bumped its new iPhone units manufactured from 75 million to 90 million anticipating higher demand. Coming to 2022, it has decided to stick with the same number instead of pulling it back.

The number of units being manufactured is also interesting given that popular Apple tipster Ming-Chi Kuo claimed that iPhone 14 is likely to experience a price hike. In a tweet, he said, “Hon Hai/Foxconn is one of the winners of the increased ASP of iPhone 14 series. I estimated iPhone 14 series ASP would increase by about 15% (vs. iPhone 13 series ASP) to $1,000-1,050 (USD) due to two iPhone 14 Pro's price hikes & higher shipment proportion”.

Apple is also trying to reduce its expenses to mitigate the slowdown. According to Bloomberg, Apple will be slowing its spending and reducing hiring across some teams in 2023.