On Wednesday, Apple (NASDAQ:AAPL) shares are down about 4 per cent after the media reported that the tech giant is withdrawing plans to ramp up iPhone 14 production this year.

The said change is a result of decreasing demand as the Cupertino-based giant anticipated it would witness a jump in orders. Reportedly, Apple informed its suppliers to reduce efforts to raise production by 6 million units in the second half of this year. The company had previously told its suppliers to prepare for a 7% increase in orders.

The tech giant plans to stay at around 90 million units for the second half of the year, which is about the same amount as in 2021. Moreover, suppliers are shifting production from lower-priced iPhones to premium models since the latter is experiencing much stronger demand.

As expected, shares of the key iPhone manufacturers plunged on the news with Foxconn declining 2.7% in today’s trading session. It is said that the next 3-5 weeks would remain critical in determining the strength of the iPhone 14 cycle as the supply chain receives additional iPhone demand feedback from the early post-launch period and iPhone builds are recalibrated accordingly.

Founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in 1976, Apple Inc is a multinational technology firm that specializes in consumer electronics, software and online services. Headquartered in California, Apple is the largest technology company by revenue.