What Display Daily thinks: There’s a real danger here that Apple is putting style over substance. The company is essentially in a holding position when it comes to volume growth, but still making inroad in the premium market as it opens up a presence in places like India. So, it is understandable that it feels that it can make up for any shortfalls in financial performance by just getting more money for the same number of units.
It is very, very debatable that the company is offering enough in terms of added value with the iPhone 15 to justify a price hike. Will there be a consumer backlash? The fortunes of major corporations, such as Samsung , TSMC, and Foxconn, are intrinsically linked to the success of Apple’s decision, as are the fortunes of thousands of suppliers and millions of employees in regions ranging from the US and China to Vietnam and India.
It just seems like an awful lot of companies are looking for safe harbor in the premium sector. The whole point of the premium sector is to have scarcity and rarity. How is that possible if everyone is trying to dump products in that segment of the market?
Apple Aims to Manufacture 85 Million Units of iPhone 15 Despite Global Economic Turmoil, Contemplating Price Increase for Pro Models
According to Bloomberg, Apple is set to manufacture approximately 85 million units of the iPhone 15 this year, a quantity similar to the previous year’s production figures for similar models. Despite prevailing economic uncertainty and an anticipated downturn in the global smartphone market, the company aims to maintain steady shipments. To achieve this, Apple is contemplating raising the prices for its Pro models, a strategic move that is expected to contribute to increased overall revenue.
While Apple’s forecast of 85 million units this year is slightly lower than the initial shipment target of 90 million in previous years, the company faced challenges that hindered the achievement of those goals. In 2021, a global chip shortage impacted production, while prolonged Covid-related controls in China disrupted operations in 2022.
Despite encountering some hurdles in the production process, such as a temporary issue with CMOS image sensors and iPhone screens, Apple remains resilient. The company is expected to resolve these challenges promptly, with minimal noticeable impact on overall production.
Counterpoint data indicates that while phone sales have been declining for eight consecutive quarters, Apple’s market share has increased to 17%, primarily due to the sustained demand for phones priced at $600 or above. Notably, the company has achieved record shares in new markets, such as India, with a notable 50% year-on-year growth in the second quarter of 2023.
