Apple introduced iPhone 14 in September.
Reuters
Apple fell after Bloomberg reported the company ditched plans to increase iPhone 14 production this year because an anticipated demand surge hasn’t taken shape.
Apple told suppliers to pull back from work on increasing the assembly of its latest iPhone series by as many as 6 million units in the second half of this year.
Shares of suppliers Taiwan Semi and Hon Hai fell during Taipei’s trading session.
Apple shares fell Wednesday after Bloomberg reported the company has shelved plans to increase production of its new iPhone 14 this year because an anticipated demand surge hasn’t occurred.
Stock in the tech behemoth lost as much as 3.9% at $145.79 in premarket trade then pared the decline to 3.4%.
Apple has told suppliers to pull back from work on increasing the assembly of its latest iPhone series by as many as 6 million units in the second half of this year, the report said, citing sources who asked not to be named because the plans are not public.
The company will target production of 90 million handsets for the period, about the same level as the prior year and in line with Apple’s original forecast this summer.
Some of Apple’s suppliers had started preparing for a 7% boost in orders after the company raised its sales projections in the weeks leading up to the iPhone 14 release, the report said.
US-listed shares of Apple chipmaker Taiwan Semiconductor Manufacturing fell 3.2% in premarket trade. The company’s stock in Taipei trade lost 2.2%. Hon Hai Precision Industry, Apple’s largest iPhone assembler, moved lower by 2.9% in Taipei.
Year-to-date, Apple stock has fallen by nearly 15% alongside a rout in large-cap technology stocks. The tech-rich Nasdaq Composite is in a bear market with a 30% slump.