The global smartphone market may be in the toilet, but the iPhone 13 continues to sell well, and Apple is expecting its upcoming iPhone 14 to do even better at launch. In Q1, Apple held a crushing lead in premium smartphones, outperforming all Android smartphone combined.

Going into Q3, a first source told Reuters that July shipments for the iPhone 13 from one factory were a third higher than July last year. That pattern was especially unusual because sales of current iPhone models tend to slow down in July and August as consumers await new models that Apple traditionally releases in September. “Judging by shipment, sales of iPhone 13 are fairly good,” the second source said.

The iPhone has continued to sell well late into its cycle in part because “China demand rebounded sharply after lockdowns ended and the iPhone was a beneficiary” of a June shopping holiday in China, Cowen analyst Krish Sankar wrote in a note to clients.

Apple’s slightly higher expectations for the forthcoming iPhone 14 underscore a growing belief among Wall Street analysts that the Cupertino, California company’s sales are likely to hold up better than the broader smartphone industry if major economies enter a recession.

Apple, which reports its fiscal third quarter earnings on July 28, conveyed its expectations to suppliers in initial forecasts as it carries out trial production of the iPhone 14, sources with direct knowledge of the matter told Reuters.

With Apple sitting at the higher end of the market, analysts believe that inflation in core items like food and fuel have taken a lesser toll on its relatively affluent user base. That comes as industry watchers such as Fubon Securities Investment Services chairman Charles Hsiao believe demand for consumer electronics will slow overall this year and next.

In keeping with its annual schedule, Apple has started trial production of the iPhone 13′s successor with the goal of ramping up mass production in August so the devices can start shipping in the fall.

The initial shipment forecasts Apple has given suppliers is “slightly higher” than that of iPhone 13 a year ago, the second source said. For more, read the full CNBC (Reuters) report.