NEWSTech

Apple ‘abandons’ plans to produce additional iPhone 14 units

The iPhone 14 lineup on a table in situ in an undisclosed Apple Store

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Apple has reportedly abandoned plans to increase production levels of the iPhone 14 due 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 a contraction in the global smartphone market (opens in new tab) this year.

TechRadar Pro has 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.

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.

Via Bloomberg (opens in new tab)

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