Apple Nixes Plan to Boost iPhone 14 Series Production Due to Lower Demand

[MacRumors]

Apple is calling off plans to increase production of its latest iPhone 14 series after an anticipated surge in demand failed to materialize, Bloomberg reports, citing sources familiar with the matter.

Apple has reportedly told suppliers to rein in efforts to increase iPhone 14 assembly by as much as 6 million units in the second half of the year. Apple had upgraded sales projections in the weeks leading up to the launch of iPhone 14, but it appears that the actual demand was not as high as expected.

As a result, Apple will aim to produce 90 million handsets for the period, which is around the same amount it produced in 2021 and in line with Apple's original forecast this summer.

As we've been hearing in the last couple of weeks, demand for iPhone 14 Pro models is stronger than the lower-priced iPhone 14, and Apple has reportedly told one supplier to shift its production capacity from the entry-level iPhones to premium models.

China's economic slump is also impacting Apple's sales, with purchases of iPhone 14 models in the first three days of availability said to have been down 11 percent on last year's iPhone 13 series.

More widely, surging inflation, recession fears, and the war in Ukraine are all impacting global demand for consumer electronics, with the smartphone market expected to shrink by 6.5 percent this year to 1.27 billion units, according to figures quoted by Bloomberg from market tracker IDC.

Article Link: Apple Nixes Plan to Boost iPhone 14 Series Production Due to Lower Demand

 

[JPack]

Looks like Apple made the right move this year. Can you imagine if they went ahead with the rumored price increases for Pro models? Or if they decided to raise prices so they could put A16 in the entire iPhone 14 lineup?

 

[madebybela]

damn... I guess apple should scrap the entire "iPhone" lineup next year.....................

 

[murad_fourth]

This is not good!

 

[theswooner]

Yeah I’m personally waiting until the 15 when we all know they are going to reduce the default size of the island. It’s currently too big for my taste and I’m pretty convinced they deliberately made it bigger just so they can reduce it next year.

 

[rukia]

So basically in line with guidance ...

 

[YEMADOLIA]

Yeah I’m personally waiting until the 15 when we all know they are going to reduce the default size of the island. It’s currently too big for my taste and I’m pretty convinced they deliberately made it bigger just so they can reduce it next year.

The hypothesis by Ross on screen removal of dynamic Islnd holds water when you put what you said in light of the situation.

 

[Kierkegaarden]

Bloomberg puts out a “report” like this about every three months, just before earnings season. It is market manipulation, plain and simple.

 

[JPack]

Yeah I’m personally waiting until the 15 when we all know they are going to reduce the default size of the island. It’s currently too big for my taste and I’m pretty convinced they deliberately made it bigger just so they can reduce it next year.

Apple won't reduce it next year as Ross Young says they're putting it under the display for iPhone 16.

 

[laptech]

As many people around the world, especially in Europe are finding out that it's a case of either purchasing the latest iphone or putting food on the table and having heating. The only companies who are not going to suffer are the energy companies.

 

[FattiesGoneWild]

Good! I hope the 14 utterly fails and completely bombs out. Total cash grab. The Pro was even grasping at straws to justify an upgrade. Only the hardcore nerds are buying them.

 

[gpat]

I hope this opens up a nice occasion to buy AAPL stocks on a dip.

 

[steve09090]

Good! I hope the 14 utterly fails and completely bombs out. Total cash grab. The Pro was even grasping at straws to justify an upgrade. Only the hardcore nerds are buying them.

It literally says they will be selling what they forecasted they will sell. So that must be an awful lot of hardcore nerds! 90 million apparently 😂😂

I shouldn’t be so annoyed at people who don’t read the article.

 

[Hrvoyay]

Looks like Apple made the right move this year. Can you imagine if they went ahead with the rumored price increases for Pro models? Or if they decided to raise prices so they could put A16 in the entire iPhone 14 lineup?

Except they raised the prices in EU, or everywhere but US, and not just Pro models but also 14. So a phone that’s basically a renamed 13 now comes at a steeper price, while we all wait for heating (or not) Armageddon.

The 799$ model iPhone 14 is 950$ is EU, and that with dollar currently stronger than euro. It’s 999€ for the cheapest 14.

 

[JHBrown]

Good! I hope the 14 utterly fails and completely bombs out. Total cash grab. The Pro was even grasping at straws to justify an upgrade. Only the hardcore nerds are buying them.

Such a ridiculous comment. Only nerds? How about people like my wife, and I? We upgraded from the iPhone 8 Plus. Justifiable!

 

[Mity]

Yeah I’m personally waiting until the 15 when we all know they are going to reduce the default size of the island. It’s currently too big for my taste and I’m pretty convinced they deliberately made it bigger just so they can reduce it next year.

Similarly, I'm not buying another iPhone until USB-C is implemented. There is nothing 'Pro' about Lightning. And maybe next year they'll find a better use for the SIM card slot instead of plastic blocking - so stupid.

 

[coolbreeze2]

Apple makes decisions based on how much money they can earn. Shame on Apple for behaving like a company.

 

[coolbreeze2]

I'm waiting on the report that says the Watch Ultra was a surprising success and Apple has increased its production.

 

[MacWorld78]

Surging inflation & recession fears - people will start to priority with their spending habit.

Not much change from iPhone 13 to 14, it would be a good idea to introduce modular hardware update like screen, CPU, SSD, battery or camera - it will be cheaper, quicker to replace and good for environment as well.

 

[steve09090]

Except they raised the prices in EU, or everywhere but US, and not just Pro models but also 14. So a phone that’s basically a renamed 13 now comes at a steeper price, while we all wait for heating (or not) Armageddon.

The 799$ model iPhone 14 is 950$ is EU, and that with dollar currently stronger than euro. It’s 999€ for the cheapest 14.

You need to include VAT, which is 21% in Europe. And you have to include that in your price because the US price doesn’t include tax as far as I am aware. $799 x 21% tax = $966

 

[iAFC]

I really don't see why I should spend another 110€ to get an iPhone 14 instead of a 13. The difference can be even greater when you consider you can find the 13 at a discount in other stores here in Finland. Hard to understand what's the strategy behind this.

 

[jamdex]

On the 13PM here so i'll be hanging on for a bit. Possibly waiting for USB-C. Possibly waiting for them to stop spanking the UK/Europe on price.

 

[Hrvoyay]

You need to include VAT, which is 21% in Europe. And you have to include that in your price because the US price doesn’t include tax as far as I am aware. $799 x 21% tax = $966

VAT differs from state to state, it’s not a blanket 21%. And as far as I know it’s not 21% in the US, isn’t it about 10 for NY? Plus, if exchange rates were “normal”, those 999€ would be about 1100$, just because markets play with currency doesn’t change what I make And am willing to pay.

 

[MayaUser]

Thank god people vote with their wallets no to this new upgrades for the non-pro models
To much similarities between 13 and 14...even from repair and thermals is a must...but next series will not have even greater reparability and thermals so even less of an upgrade from 14 to 15 will be

 

[steve09090]

VAT differs from state to state, it’s not a blanket 21%. And as far as I know it’s not 21% in the US, isn’t it about 10 for NY? Plus, if exchange rates were “normal”, those 999€ would be about 1100$, just because markets play with currency doesn’t change what I make And am willing to pay.

I was talking about Europe. But comparing $800 to €960 is only comparable if you’re including tax. The price would include vat. As it does here in Australia. No one ever gives a price excluding tax in Australia.

I really don't see why I should spend another 110€ to get an iPhone 14 instead of a 13. The difference can be even greater when you consider you can find the 13 at a discount in other stores here in Finland. Hard to understand what's the strategy behind this.

Can you imagine what would happen if Apple didn’t release a phone in a single year?