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Apple stops the production of iPhone 14 due to low sales and prepares a change in strategy

The company will prioritize top-of-the-range models. The recession affecting China conditions the components.

Not even a month ago Apple presented the new version of its flagship product: the iPhone 14, a device that was surprising for its photographic power and for the replacement of the upper dark tab on the screen by a pill that the American company baptized as a “dynamic island”. Nevertheless, things don’t seem to be going quite right.

After the presentation, the technology company hastened to confirm the price and date for its sale. In the case of the basic iPhone 14 device, the introductory price is set at $799. The iPhone 14Plus It will be priced at $899 starting.

But the numbers do not finish closing in the Cupertino company, at least in what refers to its own sales expectations.

The anticipated demand for its new smartphone was not what was expected, which led the American company to back down on its plans to increase production of its new iPhones this year.

Interestingly, the iPhone 14 Pro, the top-of-the-range model, is being more sold than the cheapest ones. In fact, the company would have asked one of its suppliers to prioritize the production of the Pro model and that would be Apple’s strategy in the future.

iPhone 14: the expectation of sale and the markets

The company is already working on another product. AP Photo

The initial plan was to reach six million assembled units of the iPhone 14 product family by the second half of this year. But according to Bloomberg, Apple asked its suppliers to slow down the pace of device manufacturing.

This is a setback on initial calculations, because Apple had improved its sales projections in the weeks before the launch of the iPhone 14 and some of its suppliers had begun to make preparations for an increase. 7% on orders.

Following these changes, Apple expects to produce roughly the same level as the previous year and in line with the original forecast that the company had announced this summer.

The decision did not go unnoticed in the markets. Apple shares fell as much as 3.3% on Wednesday in pre-market trading. US stock index futures also fell after the news and contracts for the Nasdaq 100 fell as much as 1.5%.

This lack of demand has a lot to do with the economic stagnation and the situation in China. The Asian country is the world’s largest smartphone market and is now in an economic downturn that has affected domestic mobile device manufacturers and it also hit sales of iPhones.

Purchases of the iPhone 14 series during its first three days of availability in China were 11% lower than its predecessor the previous year, according to this same medium. Globally, the smartphone market is expected to shrink 6.5% this year to 1.27 billion units, according to data from market tracker IDC.

iPhone 14: when does it arrive in Argentina

iPhone 14: prices and availability.  Photo EFE

iPhone 14: prices and availability. Photo EFE

To determine the price with which the iPhone 14 will go on sale in Argentina, several variables must be taken into account, as detailed by the MacStation chain, an authorized Apple distributor.

The figure includes the list price of the equipment at the official value, the commercial profit, plus the taxes that apply to all imported phones: 16% Customs, 21% VAT, 10% freight and insurance, 7.52% internal taxes, 5% of gross income and 6% of Profits.

Still without official data on the price or the date of arrival in the country, the latest model of the brand -iPhone 13- landed four months after it was announced in the 2021 keynote (in January 2022), so this iPhone 14 could run with the same fate.

With prices similar to the four models recently announced at the Apple Event, the iPhone 13 and its variants of 128 GB, 256 GB, 512 GB and up to 1TB could be obtained at the official reseller MacStation between $269,999 and $534,999 pesos.

With information from La Vanguardia.


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