Rumors Of iPhone 14 Production Cuts Surface: Why Prominent Apple Analyst Isn't Concerned

Zinger Key Points
  • Apple usually doesn't alter production plans for upcoming models significantly
  • Preorders for iPhone 14 in China point to robust demand

Apple, Inc. AAPL reduced its iPhone 14 chip orders to Taiwan Semiconductor Manufacturing Company Limited TSM, suggesting the tech giant has lowered its production forecast for the upcoming iPhone 14 by 10%, according to a DigiTimes report.

Prominent Apple analyst, Ming-Chi Kuo has allayed concerns about a scale-back.

Kuo Calms Nerves Regarding iPhone 14: The TFI International Securities analyst said he maintains his second-half 2022 shipment forecast of about 100 million units for iPhone 14 and 90 million units for components and electronic manufacturing services supplies.
Slight adjustments in iPhone shipment forecasts, meaning single-digit increases or decreases, are common, before launching new models, the analyst said. Apple doesn't make marked changes like this, he added.

"If a supply chain issue causes a significant change in the shipment plan of the new iPhones before mass production, Apple usually postpones the orders instead of cutting them," Kuo said.

Related Link: Apple Analyst Says iPhone 14 Will Come With Major Camera Improvements: What You Need to Know

China Demand Strong: Demand for the iPhone 14 in the Chinese market may be stronger than that of the iPhone 13, Kuo said in a tweet on Thursday.

Chinese distributors/retailers/scalpers are paying the highest prepaid deposit ever for the iPhone 14 to ensure sufficient supply, the analyst noted. Prepaid deposits for the iPhone 14 are significantly higher than the iPhone 13 and even twice as high in some areas, he added.

Apple closed Friday's session 1.62% higher at $138.93, according to Benzinga Pro.

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