Apple dials back plan to boost iPhone 14 production due to slumping demand

[Shawn Knight]

The big picture: Apple is reportedly dialing back plans to increase production of its newly released iPhone 14 in the wake of lower-than-anticipated demand. Sources familiar with the matter told Bloomberg that Apple has instructed suppliers to rein in assembly by as many as six million units in the second half of 2022. The sources said Apple is now aiming to manufacture 90 million handsets through the end of the year, which is closer to Apple's original forecast over the summer and more or less mirrors the number of iPhone 13 models the company turned out during the same period in 2021.

One reason for the dip could be the economic slump that China is currently experiencing. According to a note from Jefferies, iPhone 14 sales over the first three days of availability were down 11 percent in China compared to its predecessor a year earlier.

Global economics including surging inflation and recession fears are also impacting the overall smartphone market. We went from an environment where supply constraints were pulling down the market to a demand-constrained market, said IDC research Nabila Popal.

According to IDC, smartphone shipments were down 8.7 percent in the second quarter – the fourth consecutive quarter of declining shipments. Worse yet, the research firm expect global shipments of smartphones to decline 6.5 percent to 1.27 billion for the full year.

Some of the sources said demand for Apple's higher-end Pro models is actually stronger than for the entry-level iPhone 14 and iPhone 14 Plus. In one case, a supplier is even shifting its focus from the cheaper models to the premium offerings.

Do your recent buying habits reflect this trend? That is, do you prefer to splurge on a flagship handset and perhaps keep it longer than you normally would? Or are you the type to regularly update your phone? Maybe you prefer to shop budget models to get the most bang for your buck? I'm still using a flagship I bought in 2016 but the lure of more storage, a bigger screen and better cameras could see me shopping in the not too distant future.

Image credit: James Yarema

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https://www.techspot.com/news/96135-apple-dials-back-plan-boost-iphone-14-production.html

 

[NintPlayBox]

Apple would blame the lower demand on anything but the product's poor reception.

 

[NaviRetlav]

No USB-C no buy for me. I can stay with my iPhone 8 for 2 more years.

 

[punctualturn]

Hey Apple, open up iOS, like Android is, especially sideloading and allow browsers to use their own engines, instead of re-skinned Safari and you will have my money.

 

[Carlos GarPov]

In my case and other 9 friends' is the lack of simcard tray. We need it to travel a lot.

Besides, I have lots of friends who come from around the world to buy recently launched iPhones in USA and take them back to their countries.

Sooooo

 

[Theinsanegamer]

I'm not all that interested in dumping $1k on a phone when the price of everything goes up every month. The USA and most of the world is in a recession right now, and nobody wants to admit it.

 

[p51d007]

Ahhhh the days of "gotta have a new one every year"...
I'm hoping it isn't just the global recession & interest rate hikes but people are
finally figuring out they don't need to chuck their 1 year old phone for a new one
just because it has a faster this or that. Also, most people right now would rather
have fuel for their vehicles & food on the table, than a shiny new phone because most
people don't SAVE money when they have extra, they waste it.

 

[m4a4]

Honestly, I hope people this year are reconsidering spending money on luxury/fashion phones with the inflation so high.

Might even be a wake-up call for some of these companies (lord knows Apple could use one)...

 

[kiwigraeme]

Apple know people are keeping phones longer that is why 30% app store is a big fight , that's why it's harder to message android , that's why they want it hard for you to break out and be free.
Apple you are the product .

My son wanted to play an old android game - many games unless updated I thing may not work after was it android 6 ( mal chip - who knows ) - so disappear from front page of play store - may still be in it - with direct url.
anyway pull old phone out of draw - side load apk - hey presto - old games that were free with no adverts .
I wouldn't sideload on my current phone - unless super super careful and needed something .
But that freedom to repurpose a phone. Probably a market for old excellent gaming android phones with good screens and batteries ( or replaceable ones ) . Stick another OS on it as well

 

[Theinsanegamer]

Apple know people are keeping phones longer that is why 30% app store is a big fight , that's why it's harder to message android , that's why they want it hard for you to break out and be free.
Apple you are the product .

The absolute irony in this statement can't be measured.

Ahhhh the days of "gotta have a new one every year"...
I'm hoping it isn't just the global recession & interest rate hikes but people are
finally figuring out they don't need to chuck their 1 year old phone for a new one
just because it has a faster this or that. Also, most people right now would rather
have fuel for their vehicles & food on the table, than a shiny new phone because most
people don't SAVE money when they have extra, they waste it.

Got bad news for you: nope. Notice its the 14 that is getting production cut, not the more expensive pro line.

People will spend stupid levels of cash on BS no matter what. 95% of humans are fiscally irresponsible.

 

[Loli Pop Carbon]

Hey Apple, open up iOS, like Android is, especially sideloading and allow browsers to use their own engines, instead of re-skinned Safari and you will have my money.

The exact reasons I'm staying with Android.

Also remove the iTunes syincing requirement for media. Last time I had 5s I had to open iTunes just to delete some photos and music on my phone.