Shares of Apple fell about 2.6% in premarket training on a report that the company has told suppliers to bail on plans to increase iPhone 14 production. Demand for the new models failed to spike as high as anticipated, according to Bloomberg.
Apple will no longer aim to increase production by 6 million units in the second half of the year as it had planned, according to the report. The company will strive to produce 90 million units instead, which is roughly in line with Apple’s forecast and production from last year, according to Bloomberg.
The report also impacted Apple supplies and manufacturers. Shares of key chipmaker Taiwan Semiconductor Manufacturing also fell about 2.3% before the market open. Shares of Hon Hai, also known as Foxconn, were down about 2.9%. Foxconn builds Apple’s iPhones.
Demand for the iPhone 14 Pro is higher than for the other new phones, Bloomberg reported, leading at least one Apple supplier to shift production capacity from the lower-tier models to the premium version.
An Apple representative declined to comment.