Bloomberg News said on Tuesday, citing people familiar with the matter, that Apple is dropping plans to ramp up production of its new iPhone handsets this year after the expected surge in demand failed.
The company asked suppliers to reduce efforts to increase assembly of its flagship iPhone 14 product family to 6 million units in the second half of this year, Bloomberg said. informed of,
Instead, the Cupertino, California-headquartered company will aim to produce 90 million handsets for the period, a number roughly a year ago and in line with Apple’s original forecast this summer, the report said.
Apple did not immediately respond to a Reuters request for comment.
Bloomberg reported that demand for higher-priced iPhone 14 Pro models is stronger than entry-level versions and that at least one Apple supplier is shifting production capacity from lower-priced iPhone handsets to premium models.
Apple said this week that it would start manufacturing the iPhone 14 launched earlier this month in India, as the tech giant moves some of its production away from China.
The company launched the flagship iPhone 14 earlier this month at an event where it focused on security upgrades rather than flashy new technical specifications, with the exception of the new adventure-focused watch.
“The new iPhone 14 lineup introduces new technologies and significant security capabilities. We are excited to manufacture the iPhone 14 in India,” Apple said in a statement.
Analysts at JPMorgan expect Apple to shift about 5 percent of iPhone 14 production to India, which is the world’s second-largest smartphone market after China, by the end of 2022.
© Thomson Reuters 2022
