With global smartphone demand likely to remain in a weak state in the second half of 2023, Apple, like all other smartphone brands, also turned conservative with its iPhone shipment outlook. Apple is therefore placing fewer orders with the supply chain for the upcoming iPhone 15 series for the second half of 2023 than the iPhone 14 for the second half of 2022, according to DIGITIMES Research senior analyst Luke Lin.
Lin pointed out that Apple ordered a total of 80–90 million smartphones for its iPhone 15 series from the supply chain for the second half of 2023 in August, down from the 90–100 million units ordered in August 2020 for the iPhone 14 series for the second half of 2022. Within the orders, the iPhone 15 Pro Max owns the highest share, followed by the iPhone 15 Pro, the iPhone 15, and the iPhone 15 Plus.
Apple also shifted around the iPhone 15 series orders given to its assembly partners. Instead of giving all the iPhone Pro series' volumes to Foxconn as in the past year, Apple has given a portion of its iPhone 15 Pro Max orders to China-based Luxshare, while orders for the iPhone 15 Pro to Pegatron were also increased from before; however, Foxconn remains the main manufacturer of the two high-end smartphones in the second half of 2023, Lin said.
As compensation, Apple shifted an extra portion of its iPhone 15 orders to Foxconn, Lin added.
Lin also noted that the iPhone 15 series will share the same product lineup as its predecessor with the iPhone 15 and the iPhone 15 Pro both equipped with a 6.1-inch display and the iPhone 15 Plus, and the iPhone 15 Pro Max with a 6.7-inch one; however, sources from the upstream supply chain revealed that Apple is reportedly considering equipping a larger display for all its next-generation iPhones in 2024.
For other features, all four of the iPhone 15 series smartphones are equipped with Dynamic Island. The Pro series of the iPhone 15 is powered by a newly designed processor made with TSMC's 3nm process, while the iPhone 15 and 15 Plus have adopted the same CPU used in the existing iPhone 14 Pro series.
Lin believes the pricing of the iPhone 15 and 15 Plus will not see much of a change from the iPhone 14 and 14 Plus, but the Pro series is likely to suffer from a major price hike because of the chassis upgrades from stainless steel to titanium and the periscope lens upgrade, which is only for the Pro Max, for performing 5-6x optical zoom.
With the weak global economy, ongoing inflation, and consumers shifting their budgets from buying consumer electronics to outdoor activities, smartphone sales are expected to stay in stagnation in the second half of 2023 compared to the same period in the past several years; however, because of holiday seasons and China's keen promotion campaigns, global smartphone shipments in the fourth quarter of 2023 are still expected to grow from a quarter ago, Lin noted.
DIGITIMES Research: Apple orders to supply chain for next-generation iPhones for the second half of the year, 2022-2023 (m units) | ||
Year | Model | Order volumes |
2023 | iPhone 15 series | 80-90 |
2022 | iPhone 14 series | 90-100 |
*Note: Order volumes were estimated by Apple in August of the year and are subject to change with the market conditions as the months pass by.
Source: Upstream suppliers, compiled by DIGITIMES Research, August 2023
About the analyst
Luke Lin graduated from National Taiwan University with an MBA and BSc degree in Electrical Engineering. He is the senior smartphone analyst at DIGITIMES Research, covering the smartphone supply chain and applications. His research interests also include the geopolitical influence on the ICT supply chain, the re-globalization of electronics supply chains, and the strategic positioning of technology firms amid US-China competition.
