Weak Appetite for iPhone 14 Prompts Apple to Reel in Factory Output 

A weak appetite for the latest iPhone has prompted Apple to reel in factory output despite earlier projections that demand would be much higher.

Production of the iPhone 14 will be reduced by as many as 6 million units in the second half of this year, Bloomberg reported on Wednesday (Sept. 28), citing unnamed sources with insider information. 

Contrast with last month: Apple Tells iPhone Makers to Boost Production, Report Says

Apple is now looking to produce 90 million iPhone 14 units, about the same as last year, and in line with Apple’s first forecast over the summer, the sources told Bloomberg.

The company said in August that it was planning to build 90 million iPhone 14 units for a total of 220 million total iPhones produced in 2022, the same amount built in 2021, PYMNTS reported on Aug. 11.

There is more demand for the pro version of the iPhone 14, which is priced higher, than for the regular model, the sources said. In one case, the sources said that an Apple supplier is targeting production of the iPhone 14 Pro over the regular model.  

Weeks before the iPhone 14 was released, Apple upped sales projections — and some suppliers started getting ready for a 7% increase in orders, Bloomberg reported.

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The demand for smartphones is anticipated to contract, with the market forecasted to shrink by 6.5% in 2022 to 1.27 billion units, according to data from market tracker IDC.

“The supply constraints pulling down on the market since last year have eased and the industry has shifted to a demand-constrained market,” Nabila Popal, research director at IDC told Bloomberg. “High inventory in channels and low demand with no signs of immediate recovery has OEMs panicking and cutting their orders drastically for 2022.”