Apple drops plan to increase production of iPhone 14 series as demand falters

Before the launch of the iPhone 14 series, Apple has increase its sales projections and a few suppliers began preparing for a 7% boost in its production volume. However, that plan has changed.

Bloomberg reports that Apple has revised its plan to increase iPhone 14 production because of a drop in demand. The company will retain the previous production volume of 90 million units for this year, its original forecast.

iPhone 14

Macroeconomic conditions and the War in Ukraine impact iPhone 14 sales

People familiar with the matter said that the tech giant has told suppliers to pull back from an increase of 6 million units of the iPhone 14 product family for the second half of 2022.

Apple Inc. is backing off plans to increase production of its new iPhones this year after an anticipated surge in demand failed to materialize, according to people familiar with the matter.

In comparison to Apple’s rivals, the 90 million units of the new iPhone 14 series is still a huge order but the economic and political conditions have impacted the expected boost in iPhone sales this quarter.

iSO 16 - iPhone 14

The report details that China is currently facing an economic slump which resulted in an 11% drop in iPhone sales. Furthermore, global demand for electronics has declined.

Purchases of the iPhone 14 series over its first three days of availability in China were 11% down on its predecessor the previous year, according to a Jefferies note on Monday.

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% this year to 1.27 billion units, according to data from market tracker IDC.

The report also mentions that demand for iPhone 14 Pro models is stronger than for iPhone 14 and 14 Plus base models. The surge in high-end models has made Apple supplier Foxconn prioritize production of the Pro models.

It is expected that Apple could capture over half of the high-end smartphone market thanks to the iPhone 14 Pro models.

iPhone 14 Pro

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Addicted to social media and in love with iPhone, started blogging as a hobby. And now it's my passion for every day is a new learning experience. Hopefully, manufacturers will continue to use innovative solutions and we will keep on letting you know about them.