Apple has reportedly dropped its plans to increase production of the iPhone 14 due to lower-than-expected demand for its latest flagship smartphone.
Reports say the company hoped the launch would spark interest and made arrangements to increase production by up to six million units in the second half of 2022.
However, this scenario did not materialize, and Apple will now return to its original production plan of 90 million phones.
Smartphone sales in China
There are several possible reasons why orders have not grown the way Apple hoped. While the supply chain problems caused by the Covid-19 pandemic are easing, the most obvious explanation for the level of demand is the unfavorable macroeconomic conditions.
Inflation and rising costs of living have caused many households to abandon or delay purchasing high-end electronics. Several analysts predicted a contraction in the global smartphone market (opens in a new tab) This year.
TechRadar Pro contacted Apple for comment
The impact is certainly being felt in China, the world’s largest mobile telephony market, which is currently suffering from the economic downturn. The iPhone 14 lineup shifted 11 percent fewer units in the first three days of sale compared to the iPhone 13 last year.
In turn, the same report noted that interest in the more expensive iPhone 14 models is greater than in the standard iteration of the device. Indeed, Apple can now shift more production capacity towards more expensive variants, which will allow it to take advantage of higher margins, which will be good news for its balance sheet.
By Bloomberg (opens in a new tab)