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Apple is calling off plans to increase production of its latest iPhone 14 series after an anticipated surge in demand failed to materialize, Bloomberg reports, citing sources familiar with the matter.
Apple has reportedly told suppliers to rein in efforts to increase iPhone 14 assembly by as much as 6 million units in the second half of the year. Apple had upgraded sales projections in the weeks leading up to the launch of iPhone 14, but it appears that the actual demand was not as high as expected.
As a result, Apple will aim to produce 90 million handsets for the period, which is around the same amount it produced in 2021 and in line with Apple’s original forecast this summer.
As we’ve been hearing in the last couple of weeks, demand for iPhone 14 Pro models is stronger than the lower-priced iPhone 14, and Apple has reportedly told one supplier to shift its production capacity from the entry-level iPhones to premium models.
China’s economic slump is also impacting Apple’s sales, with purchases of iPhone 14 models in the first three days of availability said to have been down 11 percent on last year’s iPhone 13 series.
More widely, surging inflation, recession fears, and the war in Ukraine are all impacting global demand for consumer electronics, with the smartphone market expected to shrink by 6.5 percent this year to 1.27 billion units, according to figures quoted by Bloomberg from market tracker IDC.
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