There is no doubt that the tech industry is struggling to keep up with supplies amidst the global chip shortage and even the Ukraine war. Amongst others, Apple has been cutting the production of its iPhone models, partly due to these and more factors. Now, analysts suggest that Apple is reducing the production of its latest iPhones and focusing more on its services like Apple Music, Apple Fitness+, Apple TV+, and more. Let’s get into the details.
A recent report by Seeking Alpha, citing a research note from Loop Capital, states that Apple has reduced the production of its iPhone models by 9 million units. Furthermore, analyst John Donovan says that the tech giant is aiming to cut its iPhone build orders in 2022 to get it in the range of 245 million and 250 million units. Plus, the company will seemingly cut down the iPhone SE 3 productions by 20 million units, which is in line with a previous report from March.
According to Vogt, US-based upgrades and retention are still high as it is up by 4% year-over-year. Other highlights of the survey state that Music, iCloud, Arcade, and Fitness services from Apple are priced higher, except in China. The Apple News+ service, on the other hand, has become “flattish and Apple TV+ is seemingly plateaued.”
