A series of setbacks means Apple will not be able to ship the same number of iPhone 14 units that it initially set a target for. According to the latest report, the firm is expected to ship 3 million units less than the original figure.
Aiming to Ship 90 Million iPhone 14 Units Previously, Apple Has Trimmed That Figure Down to 87 Million
Following Apple’s statement that there would be lower shipments of the iPhone 14 Pro and iPhone 14 Pro Max due to a COVID-19 lockdown executed in an assembly facility located in Zhengzhou, Bloomberg has pushed out a report, revising the technology giant’s iPhone 14 shipment figure for 2022. The initial shipments target was set at 90 million but has now been reduced to 87 million.
“The company and its suppliers now aim to make 87 million devices or fewer, compared with a target of 90 million units earlier, the people said, asking not to be named discussing private information. The reduction is primarily due to softer demand for the iPhone 14 and 14 Plus models, cheaper alternatives to the high-end Pro offerings. That comes in addition to supply problems in places like Zhengzhou, which is home to the main iPhone assembly site and is under a weeklong Covid-19 lockdown.”
The positive aspect of this bleak report is that the iPhone 14 Pro and iPhone 14 Pro Max continue to be in high consumer demand. Unfortunately, the same cannot be said about the iPhone 14 and iPhone 14 Plus, which may also contribute to the reduced shipments target. Shortly after the iPhone 14 Plus launched, Apple informed suppliers to reduce production due to decreasing demand. However, those suppliers were told to increase the production of the iPhone 14 Pro and iPhone 14 Pro Max instead.
While a reduction of 3 million units may not appear much for Apple, given that the latter shipped approximately 237.9 million units in 2021, the negative figure will appear in the company’s next financial quarter and may reduce investor confidence. Also, Apple enjoys a healthy sales boom during the holiday quarter, which is already upon us, so these unforeseen circumstances have resulted in a missed opportunity for the Cupertino tech behemoth.
News Source: Bloomberg