Apple has reportedly abandoned plans to increase production levels iPhone 14 due to lower than expected demand for the latest flagship smartphone.
Reports said the company hoped the launch would trigger a surge in interest and agreed to increase production to six million units in the second half of 2022.
However, this scenario did not materialize and Apple will now return to its original plan to produce 90 million phones.
Sales of smartphones in China
There are several possible reasons why orders haven’t increased as much as Apple might have hoped. Although the supply chain problems caused by the Covid-19 pandemic are easing, the most obvious explanation for the level of demand is unfavorable macroeconomic conditions.
Inflation and the rising cost of living have caused many families to forego or delay purchases of high-end electronics. Some analysts predicted a shrinking the global smartphone market (opens in a new tab) this year.
TechRadar Pro Apple has been contacted for comment
The impact is certainly being felt in China, the world’s largest mobile market, which is currently suffering from an economic downturn. In the first three days of sales, the iPhone 14 range sold 11 percent fewer units than the iPhone 13 last year.
Conversely, the same report notes that interest in the more expensive iPhone 14 models is higher than in the standard iteration of the device. Indeed, Apple can now shift more production capacity toward its higher-priced options, allowing it to benefit from higher margins, which will provide good news for its balance sheet.
Via Bloomberg (opens in a new tab)