Apple Cuts New iPhone Output by 3 Million as Demand Falls

Tech giant Apple expects to produce at least 3 million fewer iPhone 14 devices this year than it had previously projected, according to a Bloomberg report citing unnamed sources.

Apple has lowered its production goal of iPhone 14 from 90 million to 87 million, according to people familiar with the matter. The reduction is mostly the result of lower demand for the iPhone 14 and 14 Plus models, which are less expensive alternatives to the high-end Pro offerings.

Moreover, the factory in Zhengzhou, where the majority of iPhones are assembled, is experiencing supply shortages due to a weeklong Covid-19 lockdown.

According to a Jefferies research, sales of the iPhone 14 and Plus have dropped sharply since their launch, and the decline is getting worse in China.

However, Apple said on Sunday that demand for its iPhone 14 Pro and Pro Max devices remains strong, despite a lockdown in Zhengzhou.