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Apple asks suppliers not to increase iPhone 14 production after demand falters

  • The US smartphone maker has ditched plans to increase production of its latest iPhone series after sales missed projections, sources said
  • China, the world’s biggest smartphone market, is in an economic slump that has hit the sales of both iPhones and domestic brands

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The iPhone 14, iPhone 14 Pro and iPhone 14 Pro Max displayed at the Apple Fifth Avenue store in Manhattan, New York City. Photo: Reuters
Bloomberg
Apple is backing off plans to increase production of its new iPhones this year after an anticipated surge in demand failed to materialise, according to people familiar with the matter.

The Cupertino, California-based electronics maker has told suppliers to pull back from efforts to increase assembly of the iPhone 14 product family by as many as 6 million units in the second half of this year, said the people, asking not to be named as the plans are not public.

Instead, the company will aim to produce 90 million handsets for the period, roughly the same level as the prior year and in line with Apple’s original forecast this summer, the people said.

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Apple fans in China queue up to buy iPhone 14 as new models hit stores

Apple fans in China queue up to buy iPhone 14 as new models hit stores

Demand for higher-priced iPhone 14 Pro models is stronger than for the entry-level versions, according to some of the people. In at least one case, an Apple supplier is shifting production capacity from lower-priced iPhones to premium models, they added.

US stock-index futures turned lower after the news, with contracts on the Nasdaq 100 falling as much as 1.3 per cent. Key chip maker Taiwan Semiconductor Manufacturing Co fell as much as 1.8 per cent, Apple’s biggest iPhone assembler Hon Hai Precision Industry Co was down as much as 2.4 per cent and specialised producers Largan Precision Co and LG Innotek Co both slumped by more than 7 per cent.

Apple had upgraded its sales projections in the weeks leading up to the iPhone 14 release and some of its suppliers had started making preparations for a 7 per cent boost in orders.

An Apple spokesperson declined to comment.

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