Apple Shares Fall After iPhone 14 Manufacturing Report
Wavering demand? Drop in share price on Wednesday after report that Apple is ditching plans to boost production of the iPhone 14
Apple has reportedly scaled back its manufacturing plans for the iPhone 14, prompting concern about consumer demand for the latest iPhone handset.
Bloomberg reported, citing people familiar with the matter, that Apple was backing off its plans to increase production of its iPhone 14 handsets, after an anticipated surge in demand failed to materialise.
Apple reported told its suppliers to pull back from efforts to increase assembly of the iPhone 14 family by as many as 6 million units in the second half of the year.
Consumer demand
Apple will aim instead to produce 90 million handsets – nearly the same number as a year ago and in line with Apple’s original forecast this summer, the report said.
This report of wavering demand for the new iPhones had a negative impact on Apple’s share price.
Shares in Apple are down $5.17 (down 3.4 percent) to $146.59, as of 4pm BST Wednesday.
The Bloomberg report also noted that demand for the higher-priced iPhone models (iPhone Pro etc), was stronger than demand for entry-level versions of the handset.
This has reportedly resulted in at least one Apple supplier to shift production capacity away from lower-priced iPhones to premium models.
India manufacturing
It comes after Apple confirmed this week that it has now begun manufacturing some of its iPhone 14 handsets in India.
Apple and other manufacturers have been exploring alternative production sources away from China, amid its ongoing geopolitical tensions with Western nations, coupled with its strict pandemic restrictions that have disrupted supply chains for many industries.
In August it was reported that Apple had begun talks with two of its suppliers (Luxshare Precision Industry and Taiwan-based Foxconn, otherwise known as Hon Hai Precision Industry Co Ltd) about manufacturing the Apple Watch and Macbook in Vietnam.
Market analysts estimate that Apple could turn India into a global iPhone manufacturing hub by 2025.
Apple it should be remembered only launched the flagship iPhone 14 at an event earlier this month, where it focused by and large on safety and camera upgrades (except for the Watch Ultra), rather than flashy new technical specifications.
