Apple reducing iPhone production due to low demand

Bloomberg reports that Apple is reducing production of its new iPhones after an expected rise in demand failed to materialize.

The reports led to declines in the stock prices of Apple’s Asian suppliers, including iPhone assembler Hon Hai Precision Industry Co, which fell 2.9%, and iPhone chip manufacturer Taiwan Semiconductor Manufacturing Co., which lost 1.8%.

The majority of iPhones are manufactured in Asia, at facilities such as the huge “iPhone city” Foxconn plant in Zhengzhou, China. The business has lately signaled its intention to leave China by revealing that its flagship iPhone will be manufactured in India.

Via Bloomberg:

“Disappointing iPhone demand may resonate throughout the supply chain, with the greatest impact on tech-heavy Taiwan and Korea,” said Bloomberg Intelligence analyst Marvin Chen.

Apple has instructed suppliers to scale back attempts to raise iPhone 14 product family assembly by up to 6 million units in the second half of this year, according to sources familiar with the subject cited by Bloomberg News. This comes after an anticipated demand boom failed to materialize.

Instead, the company will seek to build 90 million devices during the season, around the same as the previous year and in accordance with Apple’s original summer prediction, according to people familiar with the matter.

The decline in demand for Apple’s iPhones, the smartphone that has become a symbol of prosperity in the digital age, could be a further indicator of the broader economic slowdown.

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