Apple is backing down on its announced plan to increase production of the new iPhones 14 for the October-December 2022 quarter because there was no increase in demand, as expected by the Cupertino brand.
As published by Bloomberg this Wednesday, September 28, Apple told suppliers to manufacture about 6 million devices less than the amount previously ordered for the second half of this year.
In this way, Apple would be producing some 90 million phones until the end of the year, a figure similar to that manufactured in the same period of 2021.
In accordance with Bloombergthe drop in demand was smaller in the iPhone 14 Pro models, the product that targets the ABC1 market segment.
Along these lines, one of Apple’s suppliers is going to dedicate itself exclusively to the production of Apple’s most expensive models, leaving aside the standard ones.
IPhone 14: less sales than expected
One of the biggest problems facing Apple is that China, the world’s largest smartphone market, fell into an economic depression affecting Apple salesas well as from local brands, such as Huawei, Xiaomi and Oppo, for example.
According to a calculation by Jefferies, purchases of iPhone 14 models during the first three days on sale in China were more than 10 percent lower than what had been achieved with the iPhone 13 in September 2021.
Apple had estimated that its sales of the iPhone 14 were going to be 7 percent higher than what was registered with the predecessor model. However, in light of the results, it seems that the crisis has hit and will no longer be the case.
The novelty translated into wall street down almost 3.5 percent in pre-open trading on Wednesday, September 28, losing part of the 9 percent it had gained in September on the launch of the new model.
The same decline in Apple’s stock price is being carried over to those of the manufacturer’s suppliers.
Hon Hai Precision Industryfor example, one of the world’s largest iPhone assemblers, lost 3 percent on the stock market.
Taiwan Semiconductor Manufacturingmeanwhile, resigned almost 2 percent in operations in Hong Kong.
Likewise, the prices of the shares of the lens manufacturer collapsed Sunny Optical Technology Group (-3.8 percent).
The global sale of personal electronic devices has also been hit by inflation, fears of a long recession and problems stemming from the conflict between Russia and Ukraine.
According to IDC, the smartphone market is expected to contract 6.6 percent in 2022 to 1.275 million units.
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