Apple in trouble? iPhone 14 production could fall by 16 million this year
According to analysts at the largest Swiss bank UBS, this year the production of the iPhone 14 may be reduced by an impressive 16 million units. This is facilitated by covid restrictions in China, as well as low demand for entry-level models – the iPhone 14 and iPhone 14 Plus.
Initially, analysts believed that the total production of the iPhone 14 this year will be 92 million units, but now it has been reduced to 76 million, which is 20% less than the iPhone 13 was produced last year.
“ It is important to monitor how the increase in iPhone 14 Pro/Pro Max wait times is affecting demand ,” UBS analysts wrote. “ The speed at which Apple and Hon Hai [Foxconn] are able to resolve problems in Zhengzhou is key to Q4 2022 and Q1 2023 sales, ” they added.
The iPhone Pro production problems could put further pressure on Apple’s business, analysts say, as the more expensive iPhone 14 Pro and iPhone 14 Pro Max offset low demand for the iPhone 14 and iPhone 14 Plus. Ironically, Zhengzhou, where the Foxconn plant that makes the vast majority of the iPhone 14 Pro and Pro Max, has been hit hardest by the COVID-19 restrictions. Obviously, such a significant decline in the production of the most popular Apple phones can negatively affect the company’s financial report for the fourth quarter of this year and for the entire year as a whole
