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Apple cuts production as consumer spending drops

Manufacturer to cut iPhone 14 Plus production amid slowing demand, market researcher says

US tech giant Apple will cut assembly of the recently launched iPhone 14 Plus to counter weak smartphone sales, market researcher TrendForce reported on Tuesday. The company is reportedly focusing on higher-end models instead.

According to the report, the manufacturer will increase production of the more expensive iPhone 14 Pro, whose share has risen to 60% of total production from the originally planned 50%. It could still increase to 65% in the future.

The researcher said Apple’s high-end Pro and Pro Max devices were selling well at a time when a global chip crisis was unfolding, helping the company boost its margins.

He also warned that rising U.S. interest rates could dampen consumer spending, undermining demand for iPhones in the first quarter of 2023. That could lead to a 14% drop in year-on-year production to 52 million units.

READ MORE: Apple admits critical iPhone and Mac bugs

Data from research firm Canalys shows that Apple was the only top-five vendor to see shipment growth in the third quarter. The company improved its global smartphone market share to 18% from 15% a year ago despite the market shrinking.

Last month, Apple announced it would manufacture the iPhone 14 in India as it moves some of its production out of China to mitigate risks stemming from growing tensions between Washington and Beijing.

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