Apple aims 'to keep output of iPhones steady this year'

Tech giant to produce about 85m units of the iPhone 15

Apple and its rivals are grappling with sharp declines in demand for electronics from smartphones to computers, as corporations and consumers held off on purchases in the face of surging prices and economic uncertainty.

Apple is asking suppliers to produce about 85 million units of the iPhone 15 this year, roughly in line with the year before, according to people familiar with the matter.

The company is aiming to hold shipments steady despite tumult in the global economy and a projected decline in the overall smartphone market. It’s likely to increase revenue overall because Apple is considering raising the price for Pro models, said the sources. 

The fortunes of Apple, the world’s most valuable company, reverberate through the global economy, driving business for thousands of suppliers and fuelling employment for millions. Its shares have surged almost 50% this year, pushing its market capitalisation to $3 trillion.

Apple and its rivals are grappling with sharp declines in demand for electronics from smartphones to computers, as corporations and consumers held off on purchases in the face of surging prices and economic uncertainty. 

In the US, the Federal Reserve is expected to raise interest rates again this week to fight inflation, while China’s economy, the world’s second largest, lost steam in the second quarter. 

Apple’s production schedule is closely scrutinised because of the company’s broad impact. From Samsung Electronics to Foxconn, some of the world’s largest corporations depend on iPhone business to drive growth and margins. 

• Bloomberg