According to people familiar with Apple’s plans, the company expects to produce at least 3 million fewer iPhone 14 phones this year than originally anticipated. According to Bloomberg, it now plans to launch 87 million smartphones instead of 90 million. This is primarily due to the drop in demand for the iPhone 14 and 14 Plus models. They also added quarantine issues in Zhengzhou, where the main iPhone assembly plant is located. Apple shares fell 1.5% to $136.3 in early trading in New York.

Sales of the iPhone 14 and Plus have fallen sharply since their launch, and the slowdown in sales in China is intensifying, according to an analysis of the world’s largest smartphone market by Jefferies bank. Apple had previously canceled plans to increase production of its new iPhones after the first sales figures for the new smartphones surfaced.

In addition, SMBC Nikko analysts led by Resuke Katsura on Friday lowered their overall forecast for Apple’s production in 2022 from 91 million to 85 million. On Sunday, Apple released a press release acknowledging that the lockdown in Zhengzhou will limit the production capacity of the iPhone 14 Pro and iPhone 14 Pro Max smartphones.