Concern over Apple’s iPhone demand likely overblown

Citing “people familiar with the matter,” Bloomberg News suggested on Thursday that “demand for the iPhone 13 lineup has weakened.” This “iPhone slowdown” story is pretty much an annual event in recent years, but it’s a story that’s been overblown for years now.

iPhone 13 Pro and flagship iPhone 13 Pro Max is available in four stunning finishes including graphite, gold, silver, and sierra blue.
iPhone 13 Pro and flagship iPhone 13 Pro Max is available in four stunning finishes including graphite, gold, silver, and sierra blue.

James Brumley for The Motley Fool:

We’ve heard this warning about the iPhone before, but these bearish outlooks often failed to materialize.

It actually makes sense that interest in Apple’s latest iteration of the iPhone — which was unveiled in mid-September and made available later in the month — isn’t absolutely rock-solid. Not only is inflation making consumer electronics more expensive, but a wobbly economy may be preventing some consumers from making high-end purchases.

Except we’re not exactly seeing the slowdown reflected in the available data.

We’ve heard warnings of waning iPhone sales before. Indeed, we’ve heard it a lot. Such caution began surfacing as early as 2016 and persisted through the following year. Those warnings are now a common theme of Apple coverage, though the world looked the other way last year due to the global coronavirus outbreak.

All in all, the declines have never been as devastating or long-lived as the headlines implied they would be. For those who’ve cared to notice, iPhone sales have been growing again for several quarters running and in a tough environment for the industry.

MacDailyNews Take: Stay the course. This year’s annual iPhone demand kerfuffle, too, shall pass.

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2 Comments

  1. iPhones always sell at maximum capacity between launch and the first Christmas. Apple always reduces orders for components in December because they won’t continue working at peak capacity after Christmas.

    Every year we get some variation of the sky falling in because Apple is lowering production rates. Before iPhone, the sky used to fall in every December when iPod components orders were reduced.

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