The economic downturn of Apple’s biggest markets in the Americas, Greater China and Europe has dwindled the sales of its newly launched iPhone 14.
Techpoint reported that Apple had cut the production of the iPhone 14 line-up production by 6 million units, a decision that was taken due to low sales.
In a collaborative effort, Tech review website, Bloomberg’s report and data from SellCell, iPhone 14 and 14 Plus are performing twice as bad as iPhone 13 and iPhone 13 mini after a 10-day period of launch.
With a significant drop of 40 per cent, the iPhone 14 with 512 gigabytes of storage is the worst performer, 10 days after the new iPhone 14 line-up was launched.
However, iPhone 14 Pro and 14 Pro Max which are more expensive during the 10-days after launch are not doing badly.
iPhone 14 Pro Max has had its demand drop by just 19.6%, which is slightly better than last year’s iPhone 13 Pro Max.
America, which is the most significant contributor to Apple’s sales with a recorded $35.8 billion revenue in Q3 2021, a 44 per cent of Apple’s global revenue is not buying into its new iPhone 14.
This is due to inflation in the US which is at a 40-year high. According to Guardian, consumer confidence levels which measure the level of optimism or pessimism of consumers toward the country’s financial situation, are at a record low.
Economics Professor Kenneth MacLaughlin told Al Jazeera that one of the reasons for high inflation in the US is the injection of trillions of dollars in stimulus checks into the economy during the COVID-19 pandemic.
Europe is another of Apple’s biggest markets, raking in $18.94 billion for the company in Q3 2021, 23.3% of the company’s revenue during the period.
Like the US, Europe is also facing economic problems. The Russia-Ukraine war has reduced economic growth in the European Union by 1%.
According to the European Investment Bank, “further trade disruptions or increased economic sanctions could plunge the European economy into recession.”
Greater China, which includes China, Hong Kong, and Taiwan, was responsible for 18% of Apple’s revenue in Q3 2021, generating $14.8 billion.