Apple confident to remain unscathed while smartphone market plummets
Apple’s iPhone 13 has continued to sell well in spite of the slow down in smartphone sales, and the company expects the trend to continue for its upcoming iPhone 14. Reuters was told by sources close to Apple that it has entered the trial production phase for iPhone 14, the sales of which were forecasted to beat those of iPhone 13 in the fiscal third quarter earnings report released on July 28, 2022.
Experts have analyzed that the recent price hikes in food and fuel prices has not impacted Apple as much because its client base is more affluent. Meanwhile, the slowdown in smartphone sales in China has caused a 10% decrease in smartphone sales. Although, iPhone may experience some decrease in its sales, Cowen has forecasted that this decrease will only be 1% compared to a 13% decrease in other smartphones’ sales.
According to Cowen’s forecast, chipmakers that get their revenue primarily from Apple, such as Skyworks Solutions that gets 55% of its revenue from selling a radio chip to Apple, will stay insulated from the slump in market, while others were downgraded to “market perform.”