Apple cuts iPhone 14/Plus series production by 3 million units as demand cools

People familiar with the matter as saying that due to cooling demand, Apple will cut new iPhone production by at least 3 million units.

The company and its suppliers are now targeting production of 87 million units or less, according to sources, compared with a previous target of 90 million, with the cut mainly due to weak demand for the iPhone 14 and 14 Plus models, both of which This model is a cheap alternative to the high-end Pro line, but most users won't buy it.

On October 27 this year, Apple released its latest financial report. The financial report shows that in the fourth quarter of fiscal 2022, revenue was US$90.15 billion and net profit was US$20.721 billion; iPhone revenue was US$42.63 billion, a year-on-year increase of 9.7%; wearable devices, home, and accessories were US$9.65 billion, a year-on-year increase of 9.8%.

By business, Apple's growth in the third quarter was mainly due to the iPhone and Mac. Apple released the new iPhone 14 series in the third quarter, and the iPhone 14 series models sold well, driving the growth of Apple's mobile phone shipments.

Apple said that the current main source of revenue is the iPhone, and the regional distribution is mainly concentrated in the United States, Europe, China, Japan, and other Asia-Pacific regions.

According to Canalys data, Apple shipped 53 million units in the third quarter, an increase of 8% year-on-year. The growth in shipments has brought the increased performance to the company. In the third quarter, Apple's iPhone business achieved revenue of US$42.6 billion, a year-on-year increase of 9.7%, which was the main source of the company's revenue growth.

Apple issued a statement today updating the current availability of the iPhone 14 Pro and iPhone 14 Pro Max. Apple said shipments of the iPhone 14 Pro and iPhone 14 Pro Max will be lower than expected due to a significant reduction in current capacity at Foxconn’s Zhengzhou plant.

At the same time, Foxconn also lowered its fourth-quarter outlook. Previously, Foxconn's guidance for fourth-quarter results was "cautiously optimistic." Now, Foxconn has said it will "downgrade" its outlook because of the Zhengzhou factory issue.

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