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Apples flat iPhone production target for 2022 likely to raise concerns

Apples flat iPhone production target for 2022 likely to raise concerns

According to reliable sources, Apple Inc. will not produce any more iPhones this year than the previous year, despite predictions that the iPhone 14 will include significant enhancements. The company’s prediction that sales of its most popular product will not expand could indicate that the brand is pessimistic about the situation in the upcoming years.

Apple is requesting its suppliers to make around 220 million iPhones, which is close to the number it asked for in 2021. This contrasts with some expert estimates that Apple would produce approximately 20 million additional phones this year than the previous year.

It's simple to understand this strategy, experts claimed, given that iPhone 14 Pro is predicted to drop the notch to maintain its standards, as well as deliver a less-priced big phone, which sounds like another revenue-generating opportunity for the company.

It is worth noting that Apple's projections aren't dependable always. There have been numerous claims that it has slashed production after overestimating the number of phones it would require.

It's always possible that Apple's wrongdoing is overshadowed by many people who will want to buy phones. Experts keeping track of the company developments stated that iPhone 14's challenges will start from the demand side rather than the supply side.

On the other hand, Apple has announced to record USD 8 billion in losses during the second quarter of 2022, due to anti-COVID lockdowns in China, which in turn is impacting its manufacturing & distribution operations in its biggest revenue-generating markets.

Meanwhile, Apple is looking to shift gears to another side of the story where it intends for employees to return to the office but is facing backlash on the wage front in comparison to how some of the retail employees are getting paid. Amidst these trends as well as the inflation, the company will increase the minimum wage to USD 22 as per the revised industry standards which are also offered by tech giants such as Amazon, Microsoft, and Google.

Source Credits:

https://www.theverge.com/2022/5/26/23143000/apple-flat-iphone-production-targets-world-events-growth

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Rashi Thakkar

Rashi Thakkar

Rashi started her journey in content when she was completing her MBA. Since then, she has helped well-known startups and businesses boost their online presence. Currently Rashi pens downs insightful articles for AlpenHornNews and various other websites, covering an array of sectors from finance and business to technology and healthcare.