Apple Inc. (AAPL Stock) Plans
Apple Inc. (NASDAQ:AAPL) has scrapped plans to increase iPhone production this year; sources say after an expected demand boost failed to materialize.
People report that Cupertino, California-based Apple, has urged suppliers not to boost iPhone 14 assembly by 6 million devices in the second half of 2014. People say the plans aren’t public. Instead, the company plans to build 90 million smartphones for the quarter, which is about the same as last year and in line with Apple’s summer projection.
According to some people, the demand for the higher-priced iPhone 14 Pro models is stronger than the demand for the entry-level versions of the device. According to these sources, in at least one instance, an Apple supplier is reallocating production capacity away from iPhones with lower prices and toward more expensive models.
AAPL Stock Has Fallen Significantly
On Wednesday morning in New York, AAPL Stock price per share was down 3.9%, reaching $145.90. The price of the shares has fallen by 18% so far this year, which compares to a decline of 23% for the S&P 500 Index.
According to analysts at Morgan Stanley and Oddo, the news did not have any negative implications for their volume projections. The analyst, Anurag Rana from Bloomberg Intelligence, stated that the findings “did not surprise” him and that he continues to “think that poor demand from Europe and China might affect global iPhone sales in fiscal 2023.”
In the midst of a widespread selloff of electronic components suppliers, Taiwan Semiconductor Manufacturing Co., a key chipmaker, and Hon Hai Precision Industry Co., Apple’s largest iPhone assembler, both had declines in Taipei of 2.2% and 2.9%, respectively. In Amsterdam, the share price of ASML Holding NV, which is a manufacturer of sophisticated equipment for producing chips, fell by as much as 3.2%.
Apple’s Suppliers Have Been Falling Since the Company Announced It Will Not Be Increasing iPhone Production.
In the weeks preceding up to the launch of the iPhone 14, Apple revised its forecast for future sales, and some of the company’s suppliers had already begun making preparations for a 7% increase in order volume.
A spokeswoman for Apple declined to comment on the matter.
China is the world’s largest smartphone market, but its economic recession has hurt local manufacturers and iPhone sales. According to a report issued by Jefferies on Monday, iPhone 14 sales in China were 11% lower than sales of its predecessor during the same time period last year.
The increasing prices, worries of a recession, and disruptions caused by the conflict in Ukraine have all contributed to a decrease in the market for personal electronics throughout the world. According to data from the market tracker IDC, the global market for smartphones is anticipated to decrease by 6.5% this year, coming in at 1.27 billion devices.
According to Nabila Popal, research director at IDC, “the supply restrictions pushing down on the market since last year have eased, and the industry has changed to a demand-constrained market.” Since last year, the market has been pulled down by supply constraints. “High inventory in channels and low demand with no signs of immediate recovery has OEMs panicking and cutting their orders drastically for 2022.”
Featured Image: Megapixl © Lester69
Author Valerie Remorosa 
