UBS predicts 16 million iPhone 14 production cuts
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Apple iPhone 14 production could drop by 16 million units this year, according to UBS. According to analysts, the release of the iPhone 14 in the second half of 2022 will decrease from 92 million devices to 76 million, which is 20% less than in the corresponding period last year. The main reason was the inability to restore the pace of production at the main plant of Zhengzhou in China, the contractor of Apple – the Taiwanese company Foxconn – after massive protests from workers.
The second problem was the low demand for the new phone model. Previously, low sales of the iPhone 14 were offset by the great popularity of the iPhone Pro, but now its production will be reduced by 6 million units. As demand declined, the company also lowered its plan to release new devices from 90 million to 87 million per year. Experts now expect Apple to commission its other contractors, Pegatron and Luxshare Precision Industry, which are currently producing lower-end models, to assemble premium phones. This could help the company recover sales while reducing Foxconn’s plant utilization by around 10%.
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