Apple Expects to Sustain iPhone Sales in 2022 as Market Slows

Apple Inc (NASDAQ:AAPL). has asked its suppliers to produce at least as many next-generation iPhones this year as in 2021, counting on a wealthy customer base and reduced competition to weather the global electronics downturn.

The tech giant is telling its assemblers to produce 90 million new devices, the same level as last year, despite worsening projections for the smartphone market, according to people familiar with the matter. In total, the Cupertino, California-based company expects to assemble around 220 million iPhones for 2022, the same as last year, according to one of these people. Apple secretive forecasts suggest that it is confident of overcoming the decline in spending on smartphones and other devices. According to IDC's forecasts, the global handset market is expected to shrink by 3.5% in 2022, down 9% in the June quarter. At a time when Android devices are suffering, strong demand for Apple's new lineup is said to be driven by a customer base still willing to spend on premium devices. The virtual death of Huawei Technologies Co. has also reduced competition in high-end smartphones. Hon Hai Precision Industry Co., which assembles most of the world's iPhones, hinted at Apple's resilience this week when it said sales of smart consumer electronics products should change little in 2022. A representative for Apple declined to comment. The world's most valuable company has vowed to be disciplined on spending as economic and geopolitical uncertainty clouds the outlook for 2022 and beyond. Bloomberg reported last month that Apple will slow spending and hiring in some of its teams in 2023.