For 2022, Apple to cut iPhone builds by 9 million because of political and production issues

In its new research note, Loop  Capital states that Apple has cut iPhone builds by another 9 million units for 2022 and further cuts are also expected in the coming future. As reported by Seeking Alpha, the research firm cites factors like the “Ukraine-Russia war, supply chain disruptions, and other usual rationales” for the iPhone production cuts this year.

In October 2021, Bloomberg claimed that Apple cut iPhone 13 production by 10 million because of facing supply constraints of wireless components and OLED displays.

Apple -green iPhone 13 - iOS 15.4

Apple estimated to produce up to 250 million iPhones in 2022

Recently, it was reported that Apple plans to cut iPhone SE (2022) production by 20% because of its weak demand, the COVID-19 pandemic, and the Ukrainian crisis. According to the report, analyst John Donovan wrote that Apple is to cut iPhone production by another 9 million and produce up to 250 million iPhone units this year.

iPhone builds have dropped another 9 million to 254 million, Loop Capital said in a research note, citing “reads,” cautioning additional cuts are coming in the not too distant future.

Analyst John Donovan, noted that Apple is likely to cut its iPhone build orders for 2022 to be between a range of 245 million and 250 million, adding that the iPhone SE, which was announced last month, is likely to have its orders cut by 20 million.

Apple - iPhone SE 3

It is also noted that Apple is to increase the production of larger devices, because of the poor performance of the 5.4-inch iPhone 12 mini and iPhone 13 mini and lackluster iPhone SE (2022) models.

In conjunction, Donovan noted that Apple is likely to raise iPhone 13 builds, but only half of the decline in the iPhone SE, as consumers opt for larger devices.

“Citing several factors such as the Ukraine-Russia war, supply chain disruptions, and other usual rationale, digging deeper we are uncovering some additional insights,” Donovan wrote in a note to clients.

In addition to concerns about inflation, Donovan added “that the smaller form factor iPhones have a finite following.”

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Addicted to social media and in love with iPhone, started blogging as a hobby. And now it's my passion for every day is a new learning experience. Hopefully, manufacturers will continue to use innovative solutions and we will keep on letting you know about them.

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