Apple Inc announced plans to cut production of iPhone 14 Plus After just a few weeks of sales
After just a few weeks of sales, Apple has announced plans to cut production of its iPhone 14 Plus. The move comes at a time when the global smartphone market is experiencing a softening. Canalys estimates that the third quarter of the year saw a 9% decline in sales compared to the same period a year earlier. Analysts expect weak demand in the next six to nine months.
According to a report in The Information, sources in Apple's supply chain said the company had asked a Chinese manufacturer to stop making components for the iPhone 14 Plus. Those parts are essential for assembling larger modules for the phone. As a result, two downstream suppliers are cutting their production by 70 percent and 90 percent respectively. It's unclear if the iPhone 14 Plus production cut will affect other iPhone models or not.
The cutbacks are expected to hurt Apple's revenue and profit margins. Inflation has negatively affected purchasing power in several regions. Additionally, many countries do not offer easy monthly payments. The company is planning to add a new Plus model to its "iPhone 15" lineup in 2023.
In addition, Apple is also increasing prices on the 'Pro' models. The company cited component cost increases and global inflationary factors as the reasons for the increase. The company also increased the starting price for 'Pro' models to $999. The iPhone 14 Plus received favorable reviews for its larger screen, improved camera, and larger battery.
The iPhone 14 Plus has launched in stores in October. Pre-orders have been open for most of September. The iPhone 13 mini sold poorly, but the iPhone 13 mini is priced lower than the iPhone 14 Plus. As such, Apple has prioritized production of the new phone over the iPhone 13 mini in October.