Apple faces declining demand for new iPhone series


After an anticipated jump in demand did not occur, Apple Inc. therefore decided not to increase manufacturing of its new iPhones this year, Bloomberg News reported, citing people familiar with the situation.

According to Bloomberg, the company has asked vendors to scale back plans to ramp up production of its flagship iPhone 14 line up to 6 million devices in the second half of this year.

Read more: Apple starts assembling iPhone 14 models in India

Instead, the Cupertino, Calif.-based company will aim to produce 90 million handsets for the period, almost the same number as a year ago and in line with Apple’s initial forecast this summer, according to the report.

Demand for the more expensive iPhone 14 Pro models is stronger than for entry-level versions, and at least one Apple vendor is shifting production capacity from cheaper iPhones to higher-end models, Bloomberg reported.

Apple announced 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 out of China.

A production line in Chennai has started operating, assembling the iPhone 14 for the Indian domestic market. The move, which marks the first time the company has assembled iPhones outside of China the same year they were released, is part of a plan to separate its manufacturing operations from the Chinese state.

Read more: Major flaws detected in the iPhone 14 series

Apple unveiled its latest line of iPhones earlier this month. The iPhone 14 will have improved cameras, faster processors and longer lasting batteries at the same prices as last year’s models.

India is the world’s second-largest smartphone market after China, and Apple has been assembling phones there since 2017. But until now, manufacturing operations in the country, alongside similar operations in Brazil, have focused on assembling older models.

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