Bad news for Apple

Bloomberg reports that Apple has asked suppliers to cancel plans to increase iPhone 14 production in the second half of this year.

Apple canceled plans to increase iPhone 14 production due to lower-than-expected demand. Photo: Cnet .

Specifically, Apple’s shares fell 1.3% when the market opened on September 28 (US time, September 28, Vietnam time) due to the news that Apple delayed the plan to increase iPhone 14 production. According to Bloomberg , demand for new iPhone models did not grow as high as expected.


According to the report, Apple is no longer aiming to increase production by 6 million units in the second half of the year as originally planned. Instead, the company will try to ensure production of 90 million units, in line with the assessment of the technology world and Apple’s output last year, according to Bloomberg .


Not only Apple, the failure to increase iPhone production also affects the company’s suppliers and partners. Shares of key chipmaker Taiwan Semiconductor Manufacturing fell 1.2%. Meanwhile, shares of Hon Hai (Foxconn), Apple’s main iPhone maker, fell 2.9%.


According to Bloomberg , demand for the iPhone 14 Pro model is higher than other new versions. As a result, Apple’s suppliers had to shift production from entry-level models to premium versions.


On September 28, prominent analyst Ming-Chi Kuo said on Twitter that he did not expect an increase in overall output from the start. However, he reiterated his prediction about ramping up production of the iPhone 14 Pro and Pro Max, and called demand for the iPhone 14 and iPhone 14 Plus “quite lackluster”.


“The rumor about Apple abandoning plans to increase iPhone production seems a bit strange to me. As I previously surveyed, Apple plans to switch production from iPhone 14/14 Plus to iPhone 14 Pro/14 Pro Max as well as some discounted iPhone 13 models. However, I have never received information that Apple increased iPhone production,” analyst Ming-Chi Kuo wrote on Twitter.
Previously, Apple raised its sales forecast for a few weeks before officially launching the iPhone 14 models. However, sales of the iPhone 14 in China, the world’s largest smartphone market, affected by the effects of the economic downturn.
Purchasing power in the first three days of the iPhone 14’s availability in China fell 11% compared to its predecessor, according to a report by investment firm Jefferies on September 26. In other regions, sales of the iPhone 14 series also did not show positive signs due to inflation and the impact of the conflict in Ukraine.