90 million iPhones is what Apple is planning to produce this year

Apple seems to be playing into a trap that Android phones have recently got stuck on. The Wall Street Journal reports that the Cupertino giant is planning to produce up to 90 million iPhones this year- its largest ever single year production since it produced over 80 million iPhones last year.

Android smartphone sales have recently seen a major slump year-on-year owing to minor upgrades over existing platforms in newer phones as well as pay monthly contracts by network operators which allow customers to keep their phones for longer periods while enjoying lower costs on services.

At the same time, with large markets like China stagnating, smartphone sales are expected to grow by only 3.3 per cent this year over 2014 figures.

Even though Apple's next iPhones will feature various technologies that iOS 9 will bring, they will carry the same display, size and storage capacities as in the existing models. While performance improvement is a given, we aren't really sure how many customers will give in to the new product specifications that will also carry premium costs- among the highest in the smartphone market.

Despite the recent slump, Apple is upbeat about the fortunes of the new iPhone, which, like existing models, will sell in both 4.7 inch and 5.5 inch variants. Reports suggest that for the first time in history, Apple will hire three different firms to assemble the new iPhones. These will be existing manufacturers Foxconn and Pegatron as well as Taiwanese manufacturer Wistron Corp who had previously manufactured the iPhone 5C for Apple.

Hiring three new firms will enable Apple to ensure timely deliveries of iPhones in markets where demands will be very high in the initial months of release. It will also reduce the burden of manufacturing millions of iPhones on single suppliers.

Apple's iPhone 6 and iPhone 6 Plus models performed admirably this year, clocking 135 million sales globally. However, given the recent slump that Android phone makers had to face, we aren't really sure if Apple will succeed in maintaining its margins over a long run. Current worldwide trends certainly do not support such assumptions.


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