Here’s why Apple turned red Thursday

From Debby Wu’s “Apple to Keep iPhone Production Flat as Market Grows Tougher” posted Thursday by the Wall Street Journal:

The company is asking suppliers to assemble roughly 220 million iPhones, about the same as last year, according to people familiar with its projections, who asked not to be named as they’re not public. Market forecasts have hovered closer to 240 million units, driven by an expected major update to the iPhone in the fall. But the mobile industry has gotten off to a difficult start to the year and production estimates are down across the board.

The worst inflation in decades, a war in Ukraine and supply-chain turmoil all threaten to weigh on sales in 2022. Strategy Analytics has predicted that overall smartphone shipments will contract as much as 2% in 2022, and TrendForce has twice downgraded its full-year production forecast in recent weeks. IDC and Bloomberg Intelligence analysts both forecast about 240 million iPhones for this year earlier in the period.

My take: I take these IDC and Bloomberg forecasts — like my greens — heavily salted.

9 Comments

  1. Miguel Ancira said:
    I don’t believe the reports…and even if true, I do not see peole cutting back on services….the installed base is getting ‘too big to fail’.

    7
    May 26, 2022
  2. Greg Lippert said:
    Even if true (which I also take salty), Apple should easily support at these stock prices. And its all temporary, not Apple made but macroeconomics.

    4
    May 26, 2022
  3. Daniel Epstein said:
    Another unverifiable rumor. Apple doesn’t release IPhone unit numbers. Whose Market forecast is 240 million. An average of guesses? By the way what is the mix of types of phones. If other rumors about Apple SE demand are true then Apple could be building more profitable units. Revenue is the only real measurement and units doesn’t tell us that without the sale price.

    4
    May 26, 2022
  4. Jerry Doyle said:
    We go through this seemingly every year on the release of confidential information on the lower number of units. And most every year we learn later the spill was wrong.

    4
    May 26, 2022
  5. “Apple didn’t immediately respond to request for comment on its production plans.”
    Find a successful company willing to seriously comment on future production plans. Clickbait ubiquity as desperate robots compete to write the most inane sentences. Nary a copy editor in sight nor a cyborg. Robots are now the most active traders on major stock markets, exaggerating every share price movement. Heinlein, Orwell and Aldous Huxley could hardly imagine the unnatural dystopia we try to exist in now.
    Makes sense to be cycling along a scenic river in the Bohemian Massif.

    7
    May 26, 2022
  6. Jerry Doyle said:
    Is it my aging eyes PED, or is that picture above “blurry?” 🙂

    0
    May 26, 2022

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