Apple has reportedly asked the suppliers of iPhone14 to reduce production for this year after anticipating dwindling demands for new iPhone14 models.
The California-based tech behemoth is planning to reduce production by as many as 6 million units, Bloomberg reported quoting people familiar with the matter.
Now, the tech firm is looking to produce 90 million handsets for the period, which would be roughly the same level as the last year and in line with Apple’s original forecast this summer.
The firm had previously told its suppliers to prepare for a 7 percent increase in orders. Moreover, the demand has been more for the iPhone 14 pro models than the entry-level ones, which has forced one of the suppliers to focus the production capacity exclusively on the premium versions, it has reported.
On Wednesday, Apple’s shares went down about 4 percent following reports of cuts in production plans this year.
On Monday, the US tech giant announced that it began making its new iPhone 14 in India sooner than anticipated, as it moves some of its production away from China.
Apple had worked with Taiwan-based Foxconn Technology Group, its most important production partner, with the original goal of assembling iPhones in Chennai about two months after its global launch, Bloomberg had reported.
Apple’s move to diversify the supply chains has been in response to rising tensions between US and China over Taiwan and trade.
Earlier this month, JP Morgan analysts said that they expect Apple to move around 5 percent of iPhone production to India this year.
The report also predicted that 25 percent of all iPhone production will be in the South Asian nation by 2025.
