Apple Stops iPhone 14 Production After DEMAND FALLS

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According to people familiar with the matter, Apple Inc is abandoning plans to increase production of its new iPhones this year after an expected surge in demand did not materialize.

 

According to the people, the Cupertino, California-based electronics maker has told suppliers to back off efforts to increase iPhone 14 product family by up to 6 million units during autumn.

 

Instead, the company will aim to produce 90 million handsets during the period, which is roughly the same as the previous year and in line with Apple’s original forecast this summer.

iPhone 14
iPhone 14 – Photo by Apple

According to some sources, demand for higher-priced iPhone 14 Pro models is greater than for entry-level models. According to the report, at least one Apple supplier is shifting production capacity from lower-priced iPhones to premium models.

 

Following the news, US stock-index futures fell, with contracts on the Nasdaq 100 falling as much as 1.3%. Taiwan Semiconductor Manufacturing Co. fell as much as 1.8%, Hon Hai Precision Industry Co., Apple’s largest iPhone assembler, fell as much as 2.4%, and specialized producers Largan Precision Co. and LG Innotek Co. both fell more than 7%.

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In the weeks leading up to the release of the iPhone 14, Apple raised its sales projections, and some of its suppliers began preparing for a 7% increase in orders. 

 

An Apple representative declined to comment.

iPhone 14
iPhone 14 – Photo by Apple

 

China, the world’s largest smartphone market, is in an economic slump that has impacted domestic mobile device makers as well as iPhone sales. According to a Jefferies note issued on Monday, purchases of the iPhone 14 series during its first three days of availability in China were 11% lower than the previous year’s model.

 

Global demand for personal electronics has also been stifled by rising inflation, recession fears, and the disruption caused by the Ukraine conflict. According to market research firm IDC, the smartphone market will contract by 6.5% this year to 1.27 billion units.

 

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