In 2022, Apple will face a decline in iPhone supply. According to reports, orders have dropped by almost 14.9% over the past year. In addition, iPhone sales will decrease by 4% in 2023. However, this news may not affect the company. The reports are compiled by market analysis firm IDC, as Apple tends to outperform many other brands. According to the report, there was a significant decrease in mobile phone shipments in the last quarter of 2022.

Losses were lower than in previous years. Also, the market has been at a record low since 2013. The report states that

Global smartphone shipments fell 18.3% year-on-year to 300.3 million units in the fourth quarter of 2022 (4Q22), according to preliminary data from International Data Corporation’s (IDC) Worldwide Quarterly Mobile Phone Tracker. The drop marks the largest single-quarter decline on record and contributed to the 11.3% drop for the year. 2022 ended with shipments of 1.21 billion units, the lowest annual supply since 2013 due to reduced consumer demand, inflation and economic stress.

Including holiday quarter shipments, IDC says shipments were lower than in the third quarter. This is the first time; The market is faced with such uncertainty. Similarly, IDC says,

“We didn’t see any deliveries in a lower holiday quarter than last quarter. However, weak demand and high inventories have forced retailers to cut supply,” said Nabila Popal, director of research at IDC.

“Intense sales and promotions during the quarter helped use existing inventory rather than drive supply growth. Suppliers are careful about procurement and planning while focusing on profitability. Even the protected Apple has suffered supply chain disruptions due to the unexpected closure of key factories in China. This festive quarter shows that rising inflation and rising macroeconomic headwinds continue to push consumer spending back more than expected.”

iPhone shipments are down 4% in 2022:

Unlike the 2022 iPhone shipments, other brands performed poorly in the fourth quarter of 2022. Further information shows that Samsung’s phone supply is 15.6%, while Xiaomi’s is 26.3%. Overall, all brands faced a decline of 18.3%. Last year’s story remained the same. iPhone shipments fell almost 4% in 2022. However, this is much less than other brands such as Vivo — 22.8% and Samsung — 4.1%. And the overall decline for the year was 11.3%. We can only hope that the current year will help brands recover a bit. Phone supply will also increase by 2.8%. However, it is somewhat ambiguous.

Reasons for market uncertainty:

First, customers have a low budget to pay for phones. Inflation and mass layoffs are also the main reasons. Therefore, people are unsure about spending on luxury items.

Second, phone manufacturers are also suspects. For example, they are considering not expanding their range. Or they want to limit the production of new phones. Similarly, iPhone models will be released in limited numbers in 2024.

Third, retailers are also hesitant because they place small orders because they don’t want to have a large inventory left unsold. That’s why 2022 iPhone shipments fell 14.9% in the holiday quarter of 2022.