Apple Inc. has cautioned that the new iPhone may be in short supply this holiday season due to record sales.
The tech giant stated that the iPhone 14 is selling quickly and that it cannot keep up with demand even a month after its release. Supply chain concerns earlier this year and the quick sales of the iPhone 14 appear to be at the base of the problem.
This year, Apple sold $42.6 billion in iPhones, a 10% increase from $38.9 billion in 2021. Overall sales climbed by 8% year on year to $90.1 billion.
The new smartphone line, which starts at $799, accounted for over half of Apple’s total revenue. As a result, the company’s stock has dropped 14% this year, putting its value at $2.5 trillion.
Despite the new iPhone’s success, overall sales have not increased as much as they did in previous years. This indicates that overall demand is declining and that the iPhone 14 Pro, which has been plagued by supply challenges, may become more popular.
“We continue to worry about iPhone unit growth amid elongating replacement cycles following two strong years of sales — particularly in China — and an increasingly pressured consumer,” said Bernstein Research analyst Toni Sacconaghi.
He also predicted that the company will sell 7% fewer devices in 2023 than it did this year.