Apple seems to be backing down on its bright forecast with iPhone 14. Bloomberg reported that the California-headquartered company is dropping plans to increase production of its latest model this year.
Citing sources familiar with the matter, Bloomberg said the anticipated surge in demand has failed to materialise, although there is a stronger uptake for the higher-priced models compared to the lower-priced iPhone 14s.
Apple has asked suppliers to curtail efforts to increase assembly of its flagship iPhone 14 product family by as many as 6 million units in the second half of this year. Instead, it will aim to produce 90 million handsets for the period, nearly the same number as a year ago and in line with Apple’s original forecast this summer, the report said.
Apple did not issue any official statement following the story.
The report also mentioned that demand for the higher-priced iPhone 14 Pro models is stronger than for the entry-level versions and at least one Apple supplier is shifting production capacity from lower-priced iPhones to premium models.
Apple said on Monday that it was starting the manufacturing of iPhone 14 in India.
Market tracker IDC said global demand for personal electronics has also been suppressed by surging inflation, recession fears and disruption from the war in Ukraine. The smartphone market is expected to shrink by 6.5 percent this year to 1.27 billion units.
“The supply constraints pulling down on the market since last year have eased and the industry has shifted to a demand-constrained market,” Nabila Popal, research director at IDC, told Bloomberg.
“High inventory in channels and low demand with no signs of immediate recovery has original equipment manufacturers panicking and cutting their orders drastically for 2022.”
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