What They Say
Apple is reported to have asked its suppliers to dramatically reduce the production of some models of the iPhone 14. The iPhone 14 Plus seems to be the most affected with one component supplier being told to halt production completely while others are said to have cut production by 70% and 90%.
What We Think
I said earlier that I thought that Apple might be banking on the premium end of its business doing better than the general smartphone market. At the moment, the signs seem to be that the higher end phones are doing better than the lower ones. Sometimes, when consumers feel their income under pressure, they will spend a bit more to get something that they feel will last longer as they have less expectation of being able to simply replace the product. (BR)
