Apple, which had previously struggled with component shortages, faced a new challenge: declining demand. The company told its component suppliers that demand for the iPhone 13 lineup has weakened.
Apple has already slashed its iPhone 13 production plan for this year by as much as 10 million units from its 90 million target due to parts shortages, Bloomberg reports. At the same time, the company planned to increase sales early next year, when the deficit will ease. The company is currently informing its suppliers that these orders may not be implemented.
Nonetheless, Apple is gearing up to post a great quarter, with analysts forecasting a 6% increase in sales to $ 117.9 billion in the last three months of the calendar year. But analysts were counting on even better numbers. Inflation and the new Omicron strain are raising new concerns among some shoppers who are abandoning expensive purchases.
Apple supplier stocks declined after information from Bloomberg was released. In South Korea, LG Innotek Co. fell 11%, while shares of AAC Technologies Holdings Inc. declined 4.8% and TDK Corp. – by 4.8%.
During Apple’s last financial conference in October, CEO Tim Cook said that demand for new products was very strong and that the company is set to set a record this quarter.
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