Apple’s global iPhone production set a new record in the holiday quarter, and Apple managed to get between the huge demand for the iPhone 13/Pro lineup and well-managed supply chain operations. Balance to minimize the impact of parts shortages.
Two other factors are at play for Apple, according to market intelligence agency TrendForce. Worldwide iPhone production is estimated to have reached more than 85 million units in the holiday quarter.
After releasing the iPhone 13 series in September, Apple began aggressively ramping up shipments of these new devices to meet market demand. Thanks to its fast-paced sales and marketing cadence, Apple has been able to sell smartphones in many markets in the fourth quarter.
The brand ranks first in the quarterly rankings, and 4Q21 is no exception. In addition to maintaining its No. 1 position in the brand rankings in the fourth quarter, Apple increased its quarterly iPhone production to a new high of 85.5 million units, up 66.0% sequentially.
In addition to the demand for the iPhone 13 series models, Apple’s price cuts for older models also played a role, TrendForce said. In terms of pricing strategy, the price of the new iPhone 13 models is reasonable for consumers, and the price reduction of the older iPhone models is also evident.
In the end, Apple was able to take advantage of the vacuum left by the Chinese company Huawei, whose smartphone business has been hit hard by import bans in many countries over security concerns.
Capturing the market share left by Huawei can be considered a major factor behind Apple’s excellent performance in the fourth quarter. Over time, orders for Huawei’s flagship models (namely the P and Mate series) have been gradually overtaken by iPhone orders replaced.
In terms of annual production, Apple’s iPhone shipments will reach 233 million in 2021, up from nearly 200 million in 2020. This increase was mainly due to Apple’s expansion of its market share in China from 10% to 16%.
Strategy Analytics recently reported that iPhone shipments in Europe will increase by 11% in 2021, with Apple ranking second in market share.