# Apple falls on fears of slowing iPhone 14 demand
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-09-28
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Apple Inc shares fall over 4% amid iPhone 14 demand concerns
Meta Description: Apple's decision to scale back production of iPhone 14 models raises concerns among investors, impacting stock prices and supplier shares.
URL: https://financedigest.com/apple-falls-on-fears-of-slowing-iphone-14-demandhtml

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By Medha Singh and Nivedita Balu

(Reuters) -Apple Inc shares fell more than 4% on Wednesday after a report that the tech giant was ditching its plans to boost production of the latest iPhone fueled demand worries.

Bloomberg earlier reported that Apple had told its suppliers to curtail efforts to increase the assembly of its iPhone 14 lineup by as many as 6 million units in the second half of the year on disappointing demand.

Shares of the [world’s most valuable public company opened at a two-month low of $147.64 and were the biggest](https://www.financedigest.com/biggest-economy-in-the-world.html "Biggest Economy in the World") drag on the blue-chip Dow Jones Industrial Average Index. \[.N\]

Weaker consumer [demand is to be expected](https://www.financedigest.com/merck-kgaa-expects-2023-profit-to-slip-as-covid-demand-wanes.html "Merck KGaA expects 2023 profit to slip as COVID demand wanes") when utility bills are going up, interest rates are going up, mortgage costs are going higher … discretionary spending is going to be curtailed by that,” said Patrick Armstrong, chief investment [officer at Plurimi Wealth in London](https://www.financedigest.com/token-inc-launches-london-office-to-answer-demand-from-european-banks.html "Token, Inc. Launches London Office to Answer Demand from European Banks").

Analysts said [iPhone 14’s Pro and Pro Max versions were selling](https://www.financedigest.com/this-is-the-best-week-for-cash-savvy-iphone-fans-to-sell-their-6s-models.html "This is the best week for cash-savvy iPhone fans to sell their 6s models") at a brisk pace, although demand for the base model, typically Apple’s best seller, was underwhelming.

Apart from satellite connectivity and crash detection features, the [iPhone 14 model](https://www.financedigest.com/the-iphone-x-factor-over-a-quarter-of-smartphone-users-plan-to-upgrade-to-a-new-iphone-model.html "The iPhone X Factor: Over a quarter of smartphone users plan to upgrade to a new iPhone model") looks and feels similar to its previous iteration, although it sells for $100 more at $799 for the base version. The Pro models, which start at $999, come with fresher upgrades.

Prospective iPhone 14 buyers may opt for iPhone 13, given the hefty discount on the older model, said Abhilash Kumar of [data research firm Strategy Analytics](https://www.financedigest.com/data-analytics-scenario-planning-and-the-finance-department.html "Data analytics, scenario planning, and the finance department").

Wedbush analysts said the product mix has heavily shifted toward Pro, [pushing wait times into early November](https://www.financedigest.com/global-central-banks-extend-rate-hike-push-in-november.html "Global central banks extend rate hike push in November") for some models, and that Apple could be shifting production from the base model to Pro across Asia ahead of the holiday season.

Shares of [Apple suppliers](https://www.financedigest.com/apple-works-with-chinese-suppliers-for-latest-iphones-nikkei.html "Apple works with Chinese suppliers for latest iPhones – Nikkei") Qualcomm, Taiwan Semiconductor, STMicroelectronics , Infineon and ASML were also trading lower on the news.

(Reporting by Medha Singh, Susan Mathew and Nivedita Balu in Bengaluru; Editing by Anil D’Silva)


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