Apple to boost iPhone production, report says

Apple reportedly told suppliers to make 90 million new iPhones this year, in line with 2021 production levels, a report from Seeking Alpha says.

That comes with the company trying to build 220 million iPhones in total in 2022, the same amount built in 2021.

Apple doesn’t usually say how many iPhones it sells. It typically rolls out a new model of its signature phone in September or October, aiming to add more sales for the holiday shopping seasons.

The report notes that Apple could end up increasing the average selling price of the tentatively named iPhone 14 by up to 15% over the price of the previous one.

And if the company adds more production for the iPhone in the coming months, it would come as Foxconn, one of the biggest vendors, said it’s seeing a drop in consumer demand for smartphones.

Apple recently saw revenue growth slow to 2% year over year, reaching $83 billion, a change from previous periods when the growth rate was over 35%.

This comes as Apple wants to become more of a services company, in an ecosystem where devices matter less.

Against this backdrop, iPhone revenues were up 3%, but Macs were down 10% year over year, while iPad sales fell 2%.

The big bright spot for the company was services, where it saw sales grow 12% to more than $19 billion. This is a slowdown from the 27% growth the company saw in the same quarter of 2021.

See also: Apple services revenue grows 12% as paid subscriptions top 860 million

According to CEO Tim Cook, the company has seen greater demand for news, fitness and gaming content, which has helped service revenue. And payments activity was at record highs.

The company found supply chain issues and said costs for components and operational inputs had increased.

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