Demand issues reportedly strike Apple iPhone 14 and Nvidia as tech companies might be slowing production

Demand issues have been plaguing companies as major launches like the iPhone 14 and RTX 40 series GPUs draw closer. After continuous inflation, the market is facing a record recession, which is a reason why the demand for cutting-edge technology keeps falling.

These conditions are affecting the entire market. However, some companies have taken a step forward to cut their losses.

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How the global recession is affecting iPhone 14 and RTX 40 series production and profit margins

Nvidia recently halted the manufacturing of 300 million RTX 30 series GPUs to prevent an overflooding of graphics cards in the market. The GPU market is already over-saturated as Ethereum mining on GPUs has come to a close.

A further oversupply would cause prices to topple, a move which would badly affect Nvidia's profit margins.

According to a recent report, Apple is following the same steps as they are slowing down production volume to meet the demands of their new lineup of smartphones.

All iPhones currently in production (Image via Apple)

Apple has been controversially carrying over their last-gen chipset to the base iPhone models for a couple of years now. The same trend was followed with their latest smartphones. Amongst the four models, the iPhone 14 and 14 Plus pack the same A15 Bionic chip as the 13 Pro and the 13 Pro Max.

The new chipset, A16 Bionic, can only be seen in the 14 Pro and the 14 Pro Max. This, coupled with almost no significant upgrades to the base model and the Plus variant, has failed to give users a sufficient reason to upgrade.

In stable economic conditions, several users can justify going for the latest and the greatest. However, the current market conditions incentivize iPhone users to stick to their older devices.

Apple iPhones have entered mass production every season since September. Thus, the iPhone 14 lineup is currently being manufactured in bulk by the Chinese tech giant, Foxconn, in its Shenzhen and Zhengzhou factories.

Foxconn officials have reported that several iPhone 14 base model assembly lines have been dismantled owing to low demand and over-supply. Users can easily spot the base models in stock in every major retail store. However, the median wait time for the iPhone 14 Pro and Pro Max is 5-7 weeks.

Apple has reportedly asked Foxconn to repurpose the dismantled assembly lines to step up the Pro and Pro Max production volume and ease availability.

The iPhone 14 Pro and Pro Max are the best selling variants (Image via Apple)

Currently, the Pro Max model is the best-selling device in the current iPhone lineup. Together, the Pro and Pro Max are constituing almost 60-65% of iPhone sales, which is admittedly higher than Apple's estimates.

This scenario could also cause Apple to revitalize their lineup starting next year. The company might stop manufacturing lower-end iPhones with chips from a year back.