The first batch of iPhone 14 production will be cut by 10% due to supply chain problems.
Follow DigiTimesrecently Apple announced that it will have to cut orders for iPhone 14 despite expectations of great demand from users with the new iPhone line.
The problem stems from the fact that other major partners of TSMC, the company mainly responsible for manufacturing chips for Apple, canceled their orders due to poor business conditions.
10% off orders
Specifically, AMD and NVIDIA had to implement a policy of reduction due to unsatisfactory revenue. This has adversely affected TSMC’s chip production process and forced Apple to cut 10% from its target of 90 million units in the first iPhone 14 shipment that it had ever planned.
However, to reassure users, TSMC confirmed that the situation in the last 2 quarters of the year will be better and orders for iPhone 14 will still be completed as expected. “We have begun mass production of the upcoming Apple iPhone 14. However, the first shipment will be 10% less than the planned 90 million units,” the chip maker said.
iPhone 14 had to cut production because of the impact of the supply chain. Image: Jon Prosser.
It is worth noting that on July 1, analyst Ming-Chi Kuo of TF International Securities confirmed that the demand to buy iPhone 14 in the Chinese market may be higher than expected, even far beyond the market. iPhone 13.
Experts said that the number of iPhone 14 pre-orders by iPhone distributors in the country of billions of people reached the highest record ever. It is expected that iPhone 14 shipments by components and EMS suppliers will be in the range of 90-100 million units in the second half of 2022. Therefore, “stable demand is likely to reduce the risk of cuts. orders after the iPhone 14 launch,” added Ming-Chi Kuo.
In fact, Apple is growing strongly in the Chinese smartphone market. Figures shared by DTChat on Chinese social networks show that half of the phone devices sold during the last holiday season on June 18 were Apple’s iPhones. The country also accounts for a fifth of the tech giant’s total revenue.
Smartphone market turns bad
However, the report of DigiTimes showed that the demand for buying electronic devices was lower than expected, creating a big shock for the phone market.
Even the world’s major CPU companies such as AMD and NVIDIA could not guarantee their sales, so they had to adjust orders. Experts also predict that until the last 2 quarters of the year, the gloomy situation of the market will tend to get worse.
The smartphone market is gradually turning bad under the pressure of inflation and economic recession. Image: 9to5mac.
Follow DigiTimes, NVIDIA has paid its order to TSMC a long time ago but now wants to cancel the order. Therefore, TSMC decided to continue to produce according to pre-orders but will postpone the first delivery until the end of the first quarter of 2023.
Before that, a series of rumors about new iPhone 14 models were revealed, especially as the launch time approached.
According to analyst Ming-Chi Kuo, iPhone 14 Pro and 14 Pro Max own a larger camera cluster because the main sensor has a resolution increased from 12 MP to 48 MP, helping the device record 8K videos instead of up to 4K like as usual. previous generation. The duo will also have a new “pill” defect, with an upgrade in RAM and A16 Bionic chip.
In addition, in the new iPhone generation, Apple is expected to remove the iPhone mini line and replace it with a larger iPhone 14 Plus model, equal to the Pro Max. The two iPhone 14 and 14 Plus models keep the old notch design like on the iPhone 13 series with the A15 Bionic chip.
Apple is expected to hold an iPhone 14 launch event on September 13. Many rumors suggest that the price of iPhone 14 will be higher 100 USD compared to the previous version. Specifically, the iPhone 14 and iPhone 14 Max duo will have a starting price 799 USD and 899 USD. Meanwhile, iPhone 14 Pro will cost from 1,099 USD and iPhone 14 Pro Max will be priced from 1,199 USD.
(According to Zing)