Apple cuts iPhone production and focuses on services: Report

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Apple's iPhone production focuses on services

There is no doubt that the tech industry is struggling to keep up with supply amid the global chip shortage and the Ukrainian war. In particular, Apple has reduced production of iPhone models, partly due to these and other factors. Analysts now suggest that Apple is reducing production of the latest iPhones and focusing more on services such as Apple Music, Apple Fitness +, and Apple TV +. Let’s take a look at the details.

Apple wants to focus more on services

Recent report by Seeking alphaCiting a research note from Loop Capital, Apple states that it has cut production of iPhone models by 9 million units.In addition, analyst John Donovan said that the tech giant Aims to reduce iPhone build orders in 2022 to range from 245 million to 250 million units.. In addition, the company appears to cut production of the iPhone SE 3 by 20 million units, which is consistent with the previous report in March.

“We cite some factors such as the Ukrainian-Russian war, supply chain turmoil, and other usual rationale, and dig deeper to reveal some additional insights.” Donovan wrote in a note to the client.

Analysts also “Dark” Results for the iPhone 12mini and 13mini models on the market. Last year, Apple stopped producing the iPhone 12 mini due to low demand. And this year The company aims to completely eliminate the mini line.. It is rumored to be replaced by the alleged iPhone 14 Max model.

In another report, citing the investment company UBS, Seeking alpha Emphasize that Apple is increasingly focusing on services such as iCloud, Apple Music, and Apple TV +. “Important differentiator” For the company. The report also cites analyst David Vogt, who surveyed more than 4,000 iPhone users in four different geographic regions.

According to Vogt US-based upgrades and retention rates are still high, with a 4% year-over-year increase... Other highlights of the survey say Apple’s music, iCloud, arcade, and fitness services are more expensive, except in China. Meanwhile, the Apple News + service “has flattened and the Apple TV + seems to have peaked.”

If Apple plans to focus more on the service, it’s still unclear what will happen. What do you think about this? Please let us know in the comments below.