Ahead of iPhone 15 launch, analyst brings some bad news

With iPhone 15 launch on the horizon, Apple has reportedly taken a big step and it is not good news, reveals analyst Jeff Pu.

iPhone 15 will launch at an Apple event next month. (Unsplash)

Apple iPhone 15 launch is in sight, but it seems like it could be affected by supply-chain problems from the get-go. iPhone 15 launch date is speculated to be between September 12 and 13. However, this wouldn't be the first time that these issues have plagued the launch of Apple's new devices. When the company launched its iPhone 14 series last year, the iPhone 14 Pro and iPhone 14 Pro Max saw lengthy waiting periods of up to 5 weeks as the production of both these models took a hit due to COVID-19 restrictions at its Zhengzhou factory in Central China. This issue, combined with the global semiconductor shortage, hugely affected the iPhone's supply.

While both of these problems seem to have been resolved, a new report claims that even the iPhone 15 series could take a hit and it has reportedly forced Apple to cut initial production figures for these devices.

iPhone 15: Apple plans to cut production

According to a research note published by Jeff Pu, an analyst at a Hong Kong investment firm (via 9to5Mac), Apple is looking to cut the initial production of the iPhone 15 series which reportedly includes four models - iPhone 15, iPhone 15 Plus, iPhone 15 Pro and iPhone 15 Pro Max. The company initially planned to ship around 83 million units of iPhone 15 by the end of the year but has cut down on its production and now estimates to build 77 million units.

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Pu claims that this is due to two reasons - supply chain issues, and demand concerns.

Previous reports have highlighted that the Cupertino-based company has been struggling with supply-chain issues, especially for the display, body, and camera components of the new iPhone 15 series. Sony's camera sensor, thinner bezel display, and the new titanium frame have all contributed to the issue.

On the other hand, Apple also has “demand concerns” regarding the iPhone 15 Pro and iPhone 15 Pro Max. Owing to their reported new upgrades such as a titanium frame, USB Type-C port, action button, and periscope camera, these devices could get a price hike for the first time since iPhone 11 series. And this could result in lower demand for them.

Pu said, “The build plan cut before launch isn't a positive signal, and the potential price hike for iPhone 15 Pro Max could also dampen the end-demand.

Slowdown in sales

This comes at a time when the global smartphone market is going through somewhat of a slump. With around six weeks to go, Apple has acknowledged this slowdown, accepting that “the smartphone market has been in a decline for the last couple of quarters in the United States”, according to Bloomberg's Mark Gurman.

In an investors' call for the FY Q3 2023, Apple CEO Tim Cook confirmed a drop in iPhone sales revenue, which went down from $40.67 billion to $39.67 billion. Cook also revealed that while Apple's sales in other regions have increased, the sales in the US, which is its primary market, have seen a decline.

As the launch event of the iPhone 15 series nears, will the reported new features that Apple is bringing, be enough to once again raise its revenue and make iPhone 15 the most talked-about device in the market? We will see soon enough.