The company and its suppliers now intend to produce 87 million gadgets or fewer, down from an earlier target of 90 million units, the people said, declining to be identified because the discussions were private.

The decline is mostly attributable to weaker demand for the less expensive iPhone 14 and iPhone 14 Plus models, which compete with the high-end Pro offerings. Along with that, there are supply issues in locations like Zhengzhou, where the primary iPhone manufacturing plant is located and is currently subject to a week-long Covid-19 lockdown.

According to a Jefferies research of the world's largest smartphone market, sales of the iPhone 14 and Plus have significantly declined since their introduction, and the slowdown is intensifying in China. After an anticipated jump in demand did not occur, Apple earlier cancelled plans to increase production of its new iPhones this year, according to Bloomberg News.

The demand for Apple's iPhone 14 Pro and Pro Max gadgets is still high, the company stated on Sunday, despite the fact that the Zhengzhou shutdown will limit their ability to produce them. It chose not to give particular numbers.

On Friday, SMBC Nikko analysts under the direction of Ryosuke Katsura reduced their projection for Apple's 2022 production to 85 million new iPhones from 91 million units. Their updated prediction actually increases the expected output of iPhone Pro devices while sharply reducing the number of ordinary editions.

According to Katsura and colleagues, 'some corporations have started to factor in the possible impact of these developments in their earnings outlooks.' After 'confirmation this week of China's production and sales corrections and growing indicators of output cuts at some material makers,' they changed their outlook.