Apple appears to have miscalculated the market demand for the iPhone 14 lineup.
According to Bloomberg, the iPhone maker is dropping plans to increase production of the iPhone 14 models as the anticipated surge in demand did not happen. Sources say Apple initially told suppliers to increase production by at least 6 million units for the rest of the year, but the plan has been cancelled.
The iPhone maker will target to produce 90 million units by the end of the year, which is about the same level as last year and in line with its initial forecast. The iPhone 14 Pro models continue to sell better than the standard models, a sentiment which was shared by analyst Ming-Chi Kuo two weeks ago.
Analyst Kuo claims the pre-order for the iPhone 14 Plus is worse than the iPhone 13 mini and iPhone SE (2022). ITHome reported days ago that Foxconn would be ceasing at least five production lines that are manufacturing the iPhone 14 models due to lower-than-expected demand.
The drop in demand could be due to rising inflation, recession fears and the ongoing conflict in Ukraine. Singapore's core inflation almost hit a 14-year high of 5.1% last month. The highest level was 5.5% in November 2008.
Source: Bloomberg via 9to5Mac