Three weeks ago Apple reportedly backed off its plans to increase iPhone production.
As Bloomberg reported at the time, Apple is backing off plans to increase production of its new iPhones this year after an anticipated surge in demand failed to materialize.
Today, it appears that demand continues to worsen as The Information reports that Apple is cutting production of the iPhone 14 Plus less than two weeks after its debut, according to two people involved in the company’s supply chain.
Apple has told at least one manufacturer in China to immediately halt production of iPhone 14 Plus components while its procurement team reevaluates demand for the product, which Apple has positioned as a cheaper alternative to its more expensive iPhone Pro models but equipped with a large screen, according to one of the people.
Two downstream Apple suppliers in China that rely on the parts and assemble them into larger modules are also cutting their production 70% and 90% respectively, the person said.
Apple shares are tumbling on the headline...
And that is dragging the overall market lower, pushing the Nasdaq into the red on the day...
The news that there is just not enough demand for the trinkets and beads of the world's largest company makes one wonder if the consumer is really as strong as the talking heads would like everyone to believe.