Carriers Are Seeing Demand Stabilize For New IPhones ((HOT))

The shortage easement is in part the result of declining disposable income for consumers from high inflationary costs and interest rates. The semiconductor industry receives most of its orders from consumer-driven markets in comparison to automotive, medical, industrial, and enterprise sectors. Automobiles are an interesting overlap between the consumer market and other sectors. Because despite weakening demand for consumer electronics, automotive manufacturers are seeing increases. So much demand, in fact, automakers are buying components at three times their usual prices to try and meet orders.

Carriers are seeing demand stabilize for new iPhones

Volkswagen and BMW are seeing reductions in both sales and vehicle deliveries compared to last year. While there is some hope for stabilization next year, that expectation is tentative as lockdowns in China continue to throw wrenches into recovery. Demand is softening in Europe which should help automakers reach a supply-demand balance faster, but things might change.

The takeaway here is simple: overall, the semiconductor shortage ending for everyone will not happen until 2024. The shortage will lessen and stabilize for specific industries step by step over the next year. This requires demand to continue cooling, which seems to be true considering market forecasts. All it takes to upset this tentative balance is more supply chain disruption.

Ocean freight rates stabilized the last week in October after a long span of declining prices. While manufacturing businesses are getting a break, lower cargo prices also mean product demand is declining, according to freight marketplace Freightos. The U.S. manufacturing index (PMI) in September neared contraction territory.

In the wake of these deals, Verizon announced they had seen an increase in sales over the release of the previous year's iPhone 6S, AT&T said that sales had exceeded its expectations, and T-Mobile and Sprint announced "huge increases in sales", with T-Mobile seeing a demand roughly four times higher for the 7 than the 6.[112]

With an expectation for increased demand from upgrades further spurred by carriers promoting their 5G networks, the only thing stopping Apple from growing iPhone unit sales may be its ability to produce new iPhones. Huberty says it's currently building about 82 million units per quarter, which would certainly push Apple's 2022 iPhone revenue even higher than that of 2021.