Apple ‘abandons’ plans to produce additional iPhone 14 units
Apple had hoped to see a surge in iPhone 14 demand
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Applehas reportedly abandoned plans to increase production levels of theiPhone 14due to lower than anticipated demand for its latest flagship smartphone.
Reports says the company hoped the launch would trigger a surge in interest and had made arrangements to increase production by up to six million units during the second half of 2022.
However, this scenario failed to materialise, and Apple will now revert to its original plan of producing 90 million handsets.
China smartphone sales
There are several possible reasons why orders have not increased in the way Apple might have hoped. While supply chain issues caused by the Covid-19 pandemic are easing, the most obvious explanation for demand levels are unfavourable macroeconomic conditions.
Inflation and the rising cost of living, have meant many households have abandoned or are delaying purchases of high-end electronics. Several analysts have predicted acontraction in the global smartphone marketthis year.
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TechRadar Prohas contacted Apple for comment
The impact is certainly being felt in China, the world’s biggest mobile market, which is currently suffering from an economic downturn. The iPhone 14 range has shifted 11 per cent fewer units during the first three days on sale when compared to the iPhone 13 last year.
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Conversely, the same report noted that interest in the more expensive iPhone 14 models is higher than the standard iteration of the device. Indeed, Apple could now shift more production capacity towards its higher-priced variants, allowing it to benefit from higher margins that will offer good news for its balance sheet.
ViaBloomberg
Steve McCaskill is TechRadar Pro’s resident mobile industry expert, covering all aspects of the UK and global news, from operators to service providers and everything in between. He is a former editor of Silicon UK and journalist with over a decade’s experience in the technology industry, writing about technology, in particular, telecoms, mobile and sports tech, sports, video games and media.
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