Apple Inc AAPL is stepping back from raising production of its new iPhone 14 lineup in 2022, Bloomberg reported, citing people familiar with the matter.

What Happened: The Tim Cook-led company is backing away from ramping up production of its newest smartphones owing to faltering demand, as per the report.

The Cupertino, California-based company launched the iPhone 14 earlier in September. The device comes in five colors and features such as Emergency SOS via satellite. 

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Why It Matters: Previously, Wedbush analyst Dan Ives had estimated that Apple is expecting a heavy iPhone Pro and Pro Max shift, and despite softer macroeconomic fundamentals, there is a baseline for almost 220 million iPhone units in fiscal year 2023.

Rumors of iPhone production cuts surfaced in June. Apple watcher Ming-Chi Kuo at the time said he maintained his second-half 2022 shipment forecast of about 100 million iPhone 14 units.

Price Action: On Tuesday, Apple shares closed 0.7% higher at $151.76 in the regular hours, according to data from Benzinga Pro.

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