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Another analysis predicts that Apple will cut its iPhone 15 production by 11 million due to supply issues. This follows other reports in the past weeks voicing the same possibility due to a number of issues, including demand concerns for the new iPhone models.
According to Mizuho Bank of Japan (via 9To5Mac), its previous prediction involving the production of 84 units of iPhone has now dropped to 73 million. This translates to a cut of 11 million units. As explained in its note, the production is still experiencing problems with the supply. It adds that it could affect the overall iPhone production this year, causing its earlier prediction of 227 million units to drop to 217 million.
This prediction reflects the previous forecast by Jeff Pu of Hong Kong-based investment firm Haitong International Securities. According to the analyst, the iPhone production of Apple could drop from 83 million to 77 million due to demand concerns and supply issues related to camera sensors from Sony, iPhone Pro models’ titanium frame, and displays with thinner bezels. Foxconn’s parent company itself, Hon Hai Precision Industry Co., has also recently predicted smartphone sales to contract “slightly,” and this could affect Apple greatly.
This is not the first time such forecasts have been made involving iPhone production, as it is a recurring case for Apple every time a new series approaches its release. However, this release is expected to be tougher for Apple, with 2023 deemed to be “the worst year for global smartphone shipments in ten years.” According to Counterpoint Research’s Global Smartphone Shipment Forecast data, shipments in 2023 are expected to drop 6% to 1.15bn units. It believes this would be the lowest for the market in a decade, citing the challenges being faced by Asia, China, and North America.
On a positive note, the research firm thinks there is a silver lining for Apple despite this awful prediction, as it could snatch the top spot for annual shipments globally for the first time ever. According to its report, carrier companies will play a huge role in alleviating the situation for Apple by offering promos that could aid the iPhone sales this year.
“… We’re watching Q4 with interest because the iPhone 15 launch is a window for carriers to steal high-value customers. And with that big iPhone 12 installed base up for grabs promos are going to be aggressive, leaving Apple in a good spot,” explained Jeff Fieldhack, Counterpoint’s Research Director for North America. “It’s the closest Apple’s been to the top spot. We’re talking about a spread that’s literally a few days’ worth of sales. Assuming Apple doesn’t run into production problems like it did last year, it’s really a toss up at this point.”