29/03/2024

Tech Guru

Trusted Source Technology

Reports of Apple Cutting iPhone 14 Orders Are False: Ming-Chi Kuo

Reports of Apple Cutting iPhone 14 Orders Are False: Ming-Chi Kuo

Reports of Apple Cutting iPhone 14 Orders Are False: Ming-Chi Kuo

Recent reports of Apple scaling back iPhone 14 orders are incorrect, TF International Securities analyst Ming-Chi Kuo said in a series of tweets on Saturday (via Apple 3.0).

DigiTimes, a tech publication Kuo once previously worked for, reported on Friday that Apple had been forced to cut chip orders for the iPhone 14 from TSMC by 10%. However, Kuo’s sources indicate otherwise.

“I currently maintain my 2H22 shipment forecast for iPhone 14, about 100 mn and 90 mn units for components and EMS, respectively,” Kuo said in a tweet.

The analyst said in another tweet that Apple doesn’t materially change its shipment forecasts, and therefore orders, before actually bringing a product to market.

According to Kuo, Apple making single-digit adjustments to orders before mass production is common. However, the company usually doesn’t make double-digit adjustments until it has actually launched a product and gauged market demand.

Kuo said Apple would rather postpone orders instead of cutting them entirely in the event that a supply chain issue caused significant changes to the shipment plan of a product prior to mass production.

Apple did cut iPhone 13 production targets in October 2021 due to the global chip shortage, but that was almost a month after the lineup started shipping to customers.

The iPhone 14 is pegged for a launch later this year in September. Suppliers have already started shipping iPhone 14 components, as indicated by a recent report. Foxconn, which assembles most of the world’s iPhones, has started hiring more workers at its factories to boost iPhone 14 production.

Apple has told suppliers to prepare for 220 million iPhones this year. Of those, Kuo expects 90 million to be the upcoming iPhone 14. Apple is expecting strong sales for the iPhone 14 lineup, despite a global slowdown in demand for consumer electronics.

iPhone purchase intent in China, one of Apple’s largest markets, is currently at a six-year high according to a recent study.