This is primarily due a drop in demand for iPhone 14 and 14 Plus models.
According to Apple insiders, Apple expects to produce 3 million less iPhone 14 phones than originally planned.
Bloomberg reports that it plans to release 87 million smartphones and not 90 million. This is due to lower demand for the iPhone 14 Plus and 14 Plus models. Additionally, there were problems with quarantine in Zhengzhou (where the main iPhone manufacturing plant is located). Apple shares fell 1.5% to $136.3 following New York’s opening of trading.
iPhone 14 and Plus sales are down rapidly since they were launched, and the slowdown is worsening in China, according to Jefferies Bank’s analysis of China’s largest smartphone marketplace. Apple has previously announced that it will not increase the production of its new iPhones. This was after the first sales figures were revealed for new smartphones.
SMBC Nikko analysts Ryosuke Katzura and others reduced Friday’s overall production forecast of Apple in 2022 by reducing it from 91 to 85 million iPhones.
Apple acknowledged that Zhengzhou lockdown would limit the availability of iPhone 14 Pro Max or iPhone 14 Pro Max smartphones on Sunday in a press statement.
As reported previously, the delivery times for flagship iPhone 14 Pro and iPhone 14 Pro Max smartphones has risen dramatically as more people order them than they produce.