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Wednesday, April 17, 2024

Apple faces drop in demand of new iphone series

Demand for iPhone 14 models is failing to meet Apple’s expectations and the company is ditching plans to increase production as a result.

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

According to Bloomberg, the company instructed suppliers to scale back plans to raise production of its flagship iPhone 14 product line by as many as 6 million devices in the second half of this year.

Read more: Apple starts assembling iPhone 14 models in India

Instead, the Cupertino, California-headquartered company will aim to produce 90 million handsets for the period, nearly the same number as a year ago and in line with Apple’s original forecast this summer, the report said.

Demand for the higher-priced iPhone 14 Pro models is stronger than for the entry-level versions and at least one Apple supplier is shifting production capacity from lower-priced iPhones to premium models, Bloomberg reported.

Apple had this week said 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.

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

Read more: Major faults detected in iPhone 14 series

Apple unveiled its latest line-up 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, had been focused on assembling older models.