According to Bloomberg reports, Apple is cutting off the production of its new iPhones after the expected increase in demand does not occur.
iPhone assembler Hon Hai Precision Industry Co., which fell 2.9%, reports reports. and Taiwan Semiconductor Manufacturing Co., which produces iPhone chips that lost 1.8% in value. It caused shares of Apple’s Asian suppliers to drop.
Apple CEO Tim Cook waving as he arrives at the China Development Forum Economic Summit in Beijing on March 23, 2019. (by HAN GUAN/AFP via Getty Images)
Most iPhone production takes place in Asia at facilities such as Foxconn’s “iPhone City” facility in Zhengzhou, China. The company has recently signaled that it intends to exit China and has recently announced that it will manufacture its flagship iPhone in neighboring India.
via Bloomberg:
“Satisfactory iPhone demand could resonate throughout the supply chain and impact technologically advanced Taiwan and Korea,” said Bloomberg Intelligence analyst Marvin Chen.
Apple has ordered its suppliers to relinquish efforts to increase the assembly of the iPhone 14 product family to 6 million units in the second half of this year, amid an expected increase in demand. Bloomberg News. .
Sources said instead that the company is aiming to produce 90 million phones this time around, roughly the same number as last year, in line with Apple’s initial guidance this summer.
Declining demand for Apple’s iPhone, a smartphone that has become a symbol of prosperity in the digital age, could be another sign of a broader economic slowdown.
Source: Breitbart
