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Apple Discards Plans to Boost iPhone Production as Demand Plunges

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By Augustine Mbam - - 5 Mins Read

The production of new iPhones would have to be slowed as Apple drops plans to increase the manufacturing of the latest iPhone 14 series, which was released in September. 

Bloomberg reported that the giant tech company backed off its plan after the demand for the iPhone 14 series went lower than expected. 

With the lower demand, Apple shares in the stock market are also declining, making both regular customers and investors back off.

Apple initially planned that they were going to increase the production of the iPhone 14 this year after expectations of increased demand.

California-based electronics maker, The Cupertino, told its suppliers to drop efforts to increase the supply of iPhone 14 products. 

Apple had earlier predicted that there would make around 90 million iPhone 14 before the series was released. However, they increased the figure to an additional 6 million since they expected more demand for the product. 

However, Cupertino has said that the additional 6 million units of iPhone 14 will not be produced due to lower demand. 

So, Apple will have to stick to its original forecast for the iPhone 14 series. 

Some say the demand for entry-level versions of the iPhone 14 is much lower than the premium ones. So, Apple suppliers might shift their production to premium iPhone 14 versions, such as the Pro models. 

From what Reuters had to say, Apple has not issued any statement concerning the latest news of curtailed iPhone 14 production. 

Apple Stock Continues to Fall 

According to reports made by Bloomberg; it seems like the iPhone 14 production is not the only problem Apple is currently facing. It has been reported that the stocks of companies that supply them with parts are falling. 

Apple stocks fell by about 3.9% in New York on Wednesday morning. Apple stocks have been down this year, around 18% on the negative. For comparison, there is a 23% drop in the S&P 500 index. 

Many analysts and experts have reacted to the latest report saying that Apple may have to brace up for further losses. 

Experts have said that due to the aftereffects of Covid-19 and the current Russia-Ukraine war, weak demand might increase for the iPhone 14 series. 

Bloomberg intelligence analyst Anurag Rana said that the news about the low demand for iPhone 14 is not a surprise to him. He " believes that weak demand from Europe and China could hurt overall iPhone sales in fiscal 2023."

As mentioned, shares of companies supplying Apple with phone parts have continued to fall. 

Key chipmaker in Taipei, Taiwan Semiconductor Manufacturing Co., shares fell to around 2.2. Also, Apple's biggest iPhone assembler, Hon Hai Precision Industry Co. shares, fell to around  2.9%. 

It is also reported that other minor parts supplying companies, such as ASML Holding NV, have dropped by as much as 3.2%. 
Experts have warned that Apple should expect more falls and lower demand as the smartphone market is expected to fall by around 6.5% at the end of 2022.