Apple cancels plan to increase production of iPhone 14 smartphones amid low demand

Posted by:Alex Belov Posted on:Sep 28,2022

Apple does not plan to increase the number of iPhone 14 smartphones produced in the second half of the year due to low demand. The company originally planned to increase iPhone 14 production by 6 million in the second half of 2022. Now the smartphone maker plans to return to the summer plan, according to which it is planned to release 90 million smartphones. This number is in line with the previous year and at the level of the company’s own forecast, which was published this summer.

The forecasts for the increase in production were updated by Apple during the presentation of the new iPhone 14 line in September this year. Some of Apple’s biggest suppliers were expecting smartphone orders to rise 7%. In reality, the situation turned out to be worse. In China, iPhone sales declined amid the economic downturn. The number of orders in China for the iPhone 14 fell by 11% compared with orders for the iPhone 13 in the same period last year.

Weak demand for electronics in 2022 is linked to high inflation, recession risk fears and supply chain disruptions. According to analyst firm IDC, the smartphone market will shrink by 6.5% in 2022 compared to 2021.

High-end iPhone 14 Pro models continue to be in higher demand than base models in some regions. Because of this, one of the largest suppliers is going to focus on selling a smartphone from a more expensive segment.

On our website, you can follow the forecasts and target prices for Apple (AAPL) stock. The average target price is updated in real time based on data from leading Wall Street analyst firms.

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Alex Belov

Developers by Analyst, investor

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