Global slowdown? Apple expects to sustain iPhone 14 sales

At a time when Android devices are suffering, the stronger demand for Apple’s new lineup stems from a customer base still willing to spend on premium gadgets, the people said. The virtual demise of Huawei Technologies Co. has also eroded competition in high-end smartphone segment, they added.

As per a IDC forecast, global handset market is expected to shrink 3.5% in 2022. For the unaware, the market slid to 9% in the June quarter this year. Mobile device makers have begun freezing orders, China’s largest chipmaker warned last week.

Apple’s projections, a closely guarded secret, suggest it’s confident about weathering a slump in spending on smartphones and other devices. Apple, as per the report, is counting on an affluent clientele and dwindling competition to weather a global electronics downturn

Bloomberg reported last month that Apple would slow spending and hiring across some of its teams in 2023. The iPhone maker has promised to be disciplined about spending as economic and geopolitical uncertainty clouds the outlook for 2022 and beyond. Hon Hai Precision Industry Co., which puts together most of the world’s iPhones, hinted at Apple’s resilience when it said this week that sales of its smart consumer electronics products should be little changed in 2022.

Apple is set to launch four new iPhone models next month. The iPhone 14 series is likely to consist iPhone 14, iPhone 14 Pro, iPhone 14 Pro Max and a new iPhone 14 Max, replacing the ‘mini’ models. Apple iPhone 14 Pro models are expected to include a much-improved front-facing camera, a new rear-camera system that includes a 48-megapixel sensor, thinner bezels, a faster A16 chip, and a redesigned notch with a pill-shaped cutout for Face ID and a hole punch for the camera.

(With Inputs From Bloomberg)

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