According to recent reports from Bloomberg, the Apple iPhone 14 series demand is lower than expected. The surge that Apple has been expecting, didn’t happen. So, the company is abandoning plans to increase production in 2022.
As per the report, Apple is telling its suppliers to withdraw plans to increase assembly. Apparently, they were planning to increase iPhone 14 series assembly by 6 million units in H2 2022. However, Apple is now telling suppliers to produce 90 million units during this period, about the same level as the previous year. It’s also in line with Apple’s original forecast for this Summer. In addition, some sources state that the demand for the iPhone 14 Pro is stronger. Meanwhile, the vanilla has an average base model.
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To recall, the iPhone 14, Pro, and Pro Max are available since September 16. Meanwhile, the Plus will hit the shelves by October 7. Worth noting, that reputed analyst Ming-Chi Kuo, states that Apple asked Foxconn to switch the production line of the iPhone 14 to the Pro model. It says that after the change, the shipments of the Pro series accounted for around 60 to 65% of the total shipments in 2H22. Meanwhile, the Pro Max has around 30 to 35% percent of the overall shipments.
iPhone 14 series has been facing a lower “launch demand”
As per the investment bank, Jefferies, Chinese customers are not buying the iPhone 14 after the launch. Or at least, the demand is not higher than it was with the iPhone 13 series back in the last year. Apparently, the world’s largest smartphone market is experiencing a “year of decline”. Some analysts say that Apple’s latest series of smartphones sold 987,000 units in the first three days. The iPhone 14 series sales are 11% lower than the sales of similar products in the iPhone 13 series.
Apparently, not everything has been perfect in Apple’s iPhone world. Of course, there are multiple factors that can indicate a drop in demand. The world is in a different situation right now. Global inflation has been reducing the consumers’ power. Moreover, the iPhone 14 and Plus should suffer from lower demand. After all, they’re less interesting products, and the price difference may not be enough to make users opt for these “recycled” iPhone 13 models.