Apple is called canceling the production of the iPhone 14 because it turns out that the product is not selling well in the market.
According to sources quoted by Bloomberg, Apple ordered iPhone 14 component suppliers to continue producing components according to previous orders, which is about six million iPhone 14 units in the second half of 2022.
In total, by the end of 2022, Apple is targeting the production of 90 million iPhone 14 units. This number is approximately the same as Apple's initial plan which was revealed in the summer of 2022, as well as the number of iPhone 13 production in the same period in 2021.
One of the causes of weak sales of the iPhone 14 is thought to be the poor economic conditions in China. According to analysts from Jefferies, sales of the iPhone 14 in the first three days since being sold fell 11% in China compared to sales of the iPhone 13 the previous year.
Poor global economic conditions, including high inflation and recession, also had an impact on the mobile phone market as a whole. According to IDC researcher Nabila Popal, the condition of the mobile phone market has changed from being hampered by limited supply of components to a market with limited demand.
According to IDC, mobile phone shipments fell 8.7% in Q2 2022, becoming the fourth consecutive quarter of declines. To make matters worse, IDC estimates that mobile phone shipments will drop 6.5% to 1.27 billion units during 2022.
Although demand for the iPhone 14 is weak, several sources say the demand for the iPhone 14 Pro is even higher than the iPhone 14 and iPhone 14 Plus. Even component suppliers who have switched to supplying components for the Pro variant from the regular variant.
Previously reported, Foxconn was ordered to dismantle at least five production lines previously used to make the iPhone 14 in Zhengzhou, China. Although it is not known which production line was stopped, the iPhone 14 or iPhone 14 Plus with a larger screen.
Analyst Ming-chi Kuo also said that Apple boosted production of the iPhone 14 Pro due to high demand.
"Due to the high demand for the iPhone 14 Pro model, my recent survey indicates that Apple has asked Hon Hai (Foxconn) to shift the iPhone 14 production line to the iPhone 14 Pro," Kuo said in a tweet.
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