FAST FIVE: Futures Tumble After Report Apple Backs Off Plans To Increase IPhone Production Due To Lack Of Demand
According to the report, the phone maker which hasn't come up with a refreshingly new model in about 4 years but merely adds more megapixels and a slightly faster chip and presents it as “new”, told suppliers “to pull back from efforts to increase assembly of the iPhone 14 product family by as many as 6 million units in the second half of this year.” Instead, Apple will aim to produce 90 million handsets for the period, around the same level as the prior year and in line with Apple's original forecast this summer.
In fairness, it's not like outside analysts had any idea Tim Cook was about to pull a swticheroo: Apple had upgraded its sales projections in the weeks leading up to the iPhone 14 release and some of its suppliers had started making preparations for a 7% boost in orders.
which incidentally is hardly as it was reported by MacRumors about a week ago.
Purchases of the iPhone 14 series over its first three days of availability in China were 11% down on its predecessor the previous year, according to a Jefferies note on Monday.
As a result, the smartphone market is expected to shrink by 6.5% this year to 1.27 billion units, according to data from market tracker IDC.