Apple reduces production of its iPhone 14, demand is weaker than expected
Apple has reportedly cut iPhone 14 production in recent days, according to Bloomberg. The demand for these new models would be less than expected. However, the Cupertino company keeps smiling, given that it is the more high-end versions that sell the best.
Apple wanted to hit hard with its new range of iPhone 14. The Californian company had the idea of breaking its sales record from last year. However, the current situation would have forced him to revise his plans, and therefore to reduce the production of its smartphones.
It is Bloomberg, often very well informed, which indicates that Apple will reduce its production of iPhone to the tune of 6 million terminals. As a result, the brand will produce 90 million iPhones “only”, as many as in 2021. A historic setback? Not so sure…
Apple cuts iPhone production due to lack of demand
If Apple is reducing its production, it is because demand is lower. The current market is not really conducive to technology purchases. The war in Ukraine, the skyrocketing cost of energy, slowdowns due to supply concerns… In total, the demand for iPhones (all generations combined) would have fallen by 6.5%, according to IDC.
This report could spell disaster for Apple, but the reality is a bit different. The Cupertino brand is doing quite well, maintaining a production rate equivalent to that of last year. More so, Bloomberg notes that unlike previous years, it is the most high-end terminals that are most in demand (the Pro and Pro Max), therefore the most expensive.
The iPhone 14s are official, but the pill will be hard to swallow
The IDC firm analyzes it simply: the “classic” iPhone 14s do not bring much new for the general public, which therefore does not see the point of a purchase, especially at this time. On the other hand, the Pro versions introduce Dynamic Island. If it’s not a revolutionary system, it is innovative enough to push the public towards these versions.
As a reminder, the iPhone 14 were unveiled on September 7th. If the price remains unchanged compared to the iPhone 13 in the United States, it has risen badly in many other countries, such as France. A data that does not really play in favor of strong demand.
Source: Bloomberg
