JAKARTA - Apple Inc was forced to cut production of the iPhone 14 Plus within weeks of starting shipments to customers as it had to re-evaluate demand for its mid-range model. This was reported by The Information on Tuesday, October 18 citing two people involved in the supply chain at the company.
According to the report, the Cupertino, California-based company told at least one manufacturer in China to stop production of iPhone 14 Plus components immediately.
This move comes at a time when the global smartphone market has weakened, even shrinking 9% in the third quarter compared to the same period a year earlier. Data research firm Canalys also expects demand to continue to weaken for six to nine months in the coming year.
Apple did not immediately respond to a request for comment from Reuters on the report.
The iPhone 14 Plus, is part of a new lineup that Apple Inc. announced on September 7. The product is positioned as a cheaper alternative to the more expensive iPhone Pro models and begins shipping to customers on October 7.
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According to a Bloomberg News report, last month, Apple canceled its plans to increase production of new iPhone models because of a surge in demand that they previously thought would fail to materialize.
Apple did reduce its production due to global economic conditions that are entering an uncertain recession, but they have not yet arrived at a decision to reduce their employees.
Things are different with Microsoft. The US technology giant is reported to be reducing up to 1000 employees because of this economic problem.
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