Apple is cutting back production of iPhone 14 Plus due to weak demand

Rising US interest rates may lead to 14% drop in handset output

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The iPhone 14's Pro and Pro Max versions were selling at a brisk pace, although demand for the base model, typically Apple's best seller, has been underwhelming.

By Reuters

Published: Tue 25 Oct 2022, 2:38 PM

Apple Inc is cutting back production of iPhone 14 Plus and is increasing the output of the more expensive iPhone 14 Pro due to lukewarm demand, market research firm TrendForce said Tuesday.

The share of more expensive iPhone 14 Pro series has increased to 60% of the total output from the initially planned 50%, and it could rise to 65% in the future, the report said.

Apple did not immediately respond to a Reuters' request for comment.

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The report also said that rising US interest rates could crimp consumer spending, undermining the demand for iPhones in the first quarter of 2023. This could lead to a 14% year-on-year drop in production to 52 million units.

Analysts have in the past said iPhone 14's Pro and Pro Max versions were selling at a brisk pace, although demand for the base model, typically Apple's best seller, has been underwhelming.

Last month, the company said it would manufacture its latest iPhone 14 in India, as the tech giant moves some of its production away from China to hedge risks arising from the growing tensions between Washington and Beijing.

TrendForce estimates the share of Apple's output from India to exceed 5% in 2023 and increase over the years.

Reuters

Published: Tue 25 Oct 2022, 2:38 PM

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