The Cupertino giant has told suppliers to cut assembly of the iPhone 14 family to 6 million units in the second half of the year, according to people familiar with the matter. Apple aims to produce just 90 million units for the period, roughly in line with the brand’s original forecast last year and this summer.
Low demand for iPhone 14
Apple has reportedly asked suppliers to reduce assembly of the iPhone 14 family to 6 million units in the second half of the year due to lower demand. However, according to sources, demand for the higher-priced iPhone 14 Pro models is stronger than the entry-level versions. One of Apple’s suppliers is said to be shifting production capacity from low-cost iPhones to premium models.
Apple has upgraded sales forecasts in the weeks leading up to the iPhone 14 release, and some suppliers are starting to prepare for a 7 percent boost in orders. China, the world’s largest smartphone market, is facing an economic crisis that has also affected iPhone sales and domestic mobile device makers. According to a Jefferies note on Monday, purchases of the iPhone 14 series in China in the first three days of availability were down 11 percent from the previous year in 2021.
This is not an isolated Apple-only problem, as global demand for personal electronics has also been dampened by rising inflation fears of recession and other factors. The smartphone market is expected to decline by 6.5 percent this year to 1.27 billion units. Information From market tracker IDC.
“Since last year the supply constraints on the market have been relaxed and the industry has shifted to a demand-constrained market. OEMs with high inventory in the channels and no signs of immediate recovery are panicking and drastically cutting their orders for 2022.Nabila Popal, Research Director, IDC said.