While the global smartphone market may have struggled, Apple’s iPhone 13 is still selling well, according to reports. And, the upcoming next-generation product, the iPhone 14, it may do even better. Sources close to the matter said Apple has already started trial production of the iPhone 14 and plans to mass produce it in August. And, Apple has told suppliers that the initial sales of the iPhone 14 when it hits the market will be higher than that of the iPhone 13 a year ago.
This expectation from Apple matches the expectations of Wall Street analysts. Today, a growing number of analysts believe that Apple’s iPhone sales could be better than the smartphone industry as a whole if major economies fall into recession.
Apple focuses on the high-end smartphone market, and analysts believe inflation in core commodities such as food and fuel will have less of an impact on Apple’s relatively affluent user base.
Two people familiar with the matter from the iPhone supply chain said iPhone sales remained strong in July despite signs that overall demand in the smartphone market was cooling off.
One of the people familiar with the matter said one of the factories shipped iPhone 13 in July, which was 1/3 higher than last July. this is very rare because normally, iPhone sales slow down in July and August as consumers are waiting for new models to be released in September.
And another person familiar with the matter said, “In terms of shipments, the iPhone 13 is doing quite well.”
Krish Sankar, an analyst at investment bank Cowen, attributed the iPhone 13’s continued good sales momentum late in its lifecycle in part to “a significant rebound in demand from Chinese consumers.”
In line with previous years’ timeframes, Apple has begun trial production of the iPhone 14, with the goal of mass production in August so that it can be shipped in the fall (September), people familiar with the matter said. For the iPhone 14, Apple is providing initial sales expectations to suppliers that are slightly higher than the iPhone 13 from a year ago.
