Apple cuts production of iPhone 14 Plus due to sluggish demand, report

The decision has reportedly affected Pegatron, Apple's iPhone assembly partner

Apple is reducing manufacturing of the iPhone 14 Plus model only weeks after its launch as the company reassesses demand for the mid-range device, according to a report by The Information.

The report claims, citing two individuals involved in Apple's supply chain, that the company has instructed at least one Chinese manufacturer to immediately halt production of iPhone 14 Plus components.

Production at two downstream Apple suppliers in China that assemble the components is also being reduced by 70% and 90%, respectively. These suppliers are the only ones that produce the specific modules for iPhones.

Apple's move has reportedly affected Pegatron, its iPhone assembly partner. According to The China Times, Pegatron's Shanghai factory launched a new recruitment drive on October 12, but changed its mind just three days later, suspending the recruiting notice.

Pegatron operates four factories in mainland China, located in Kunshan, Suzhou, Shanghai and Chongqing. Among them, the Shanghai plant is the biggest iPhone production facility of Pegatron Group.

According to a recent analysis by Canalys, the smartphone market declined by 9% in the third quarter compared to the same period last year. The falling demand might be attributed to a number of factors, one being the economic downturn that has affected various economies in the world.

Even more concerning, Canalys predicts that demand will continue to fall over the following six to nine months.

With a price tag of $899, the iPhone 14 Plus is considered a more affordable alternative to the iPhone Pro ($999) and Pro Max ($1,099) variants.

But it appears that people prefer the iPhone 14 Pro, which has more features, a bigger screen and costs just $100 more than the iPhone 14 Plus.

While other iPhone 14 models were introduced on September 16, the iPhone 14 Plus began shipping to consumers on October 7.

According to some earlier reports, Apple has ordered its suppliers to cut production of the iPhone 14 by as many as six million units in the second half of 2022.

Sales of the iPhone 14 on the first three days of its release were down 11% in China compared to its predecessor a year earlier, partly because of the country's present economic challenges.

Pre-orders for the standard iPhone 14 and iPhone 14 Plus were weak, according to Ming-Chi Kuo, an Apple supply chain expert, who said last month that Apple may reduce production of the two devices.

The Information claims that despite the lingering uncertainty surrounding the iPhone 14 Plus, Apple will still probably introduce an iPhone 15 Plus next year.