The new iPhones are not flying off the shelves in the way that Apple believed they will. As a result, the company decided to scrap its plans to ramp up the production of the iPhone 14 in the second part of 2022.
According to Bloomberg, Apple previously intended to increase the production of the iPhone 14 by six million units than originally planned. However, the lower demand caused the Cupertino, California, based tech giant to rethink its strategy.
Reportedly, the company now aims to go ahead with the planned 90 million units and has already notified its suppliers that there is no need for increased production. However, Apple could still make some tweaks considering that the premium models of the iPhone 14 are in higher demand compared to the entry-level model.
The lack of demand, at least on a level Apple expected, isn’t all that surprising. The surging inflation and looming recession have caused customers to be extremely careful where they spend their money. This led to a dip in the purchase of electronics and technology gadgets, with the trend expected to carry over to the start of 2023.
After Bloomberg’s report came out, Apple’s shares fell as much as four percent to $145.84 on Wednesday morning. The Apple stock managed to bounce back later in the day and closed at $149.84 per share.