Apple is reportedly scrapping plans to increase production of its new iPhone 14 due to lower-than-expected demand.
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The company has told suppliers to abandon preparations to boost assembly of the new product line, Bloomberg News reports.
Apple initially estimated that growing demand would require an additional 6 million units beyond initial plans for 90 million for the second half of this year, according to Bloomberg.
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But the company now believes it should produce no more than 90 million iPhone 14 models — which is the same number it produced during the same period last year.
Economists say fears of a global recession, soaring inflation levels and geopolitical turmoil caused by the war in Ukraine are causing demand for products.
IDC estimates the smartphone market will shrink by 6.5% this year to 1.27 billion units, according to Bloomberg.
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Bloomberg reported that “people familiar with the matter” say demand is higher for the more expensive iPhone 14 Pro models compared to the base version.
Earlier this week, Apple said it would shift iPhone 14 manufacturing from China to India due to ongoing COVID-19 that have disrupted the industry as well as geopolitical tensions in the region.
Apple unveiled its latest iPhone lineup earlier this month. They feature improved cameras, faster processors, and longer-lasting batteries at the same prices as last year's models.
Source of information: nypost.com
