Apple abandoned plans to increase the production of the iPhone of the new generation this year after her hopes for a surge in demand with the iPhone 14 family's announcement failed, Bloomberg reported with reference to anonymous sources.
It is reported that the company originally planned to increase its iPhone output this year by 6 million more than last year, but subsequently notified the contractors that the intention had been abandoned. Instead, Apple plans to stop at 90 million devices, which is roughly the same as last year ' s output, while the demand for a more expensive series of iPhone 14 Pro has been higher than for more accessible models, the Bloomberg sources approve. At least one contractor has already started to convert production capacity from more accessible iPhone to premium-class models.
China is experiencing an economic downturn, and this is a powerful negative factor, given that it is the world's largest smartphone market: in the first three days of sales, the demand for iPhone 14 devices was 11% lower than last year's models, in Jefferies, and the global smartphone market this year will drop by 6.5% to 1.27 billion, according to IDC.
Apple ' s rejection of the iPhone initiative had a negative impact on the company ' s contractors ' shares: Hong Hai Precion Industry ' s securities were 2.9% off, and TSMC ' s assets were 1.8% off, and Taiwan ' s stock index fell by 2.3% as of November 2020.