Apple is cutting back production of iPhone 14 Plus and is increasing the output of the more expensive iPhone 14 Pro due to lukewarm demand, market research firm TrendForce said Tuesday.

The share of more expensive iPhone 14 Pro series has increased to 60 percent of the total output from the initially planned 50 percent, and it could rise to 65 percent in the future, the report said.

Apple did not immediately respond to a Reuters’ request for comment.

The report also said that rising US interest rates could crimp consumer spending, undermining the demand for iPhone models in the first quarter of 2023. This could lead to a 14 percent year-on-year drop in production to 52 million units.

Analysts have in the past said iPhone 14’s Pro and Pro Max versions were selling at a brisk pace, although demand for the base model, typically Apple’s best seller, has been underwhelming.

Last month, the company said it would manufacture its latest iPhone 14 in India, as the tech giant moves some of its production away from China to hedge risks arising from the growing tensions between Washington and Beijing.

TrendForce estimates the share of Apple’s output from India to exceed 5 percent in 2023 and increase over the years.

Last week, it was reported that Apple was cutting production of iPhone 14 Plus within weeks of starting shipments as it re-evaluates demand for the mid-range model. The Cupertino, California-based company is said to have told at least one manufacturer in China to immediately halt production of iPhone 14 Plus components.

The decision comes at a time when the global smartphone market has been softening, shrinking 9 percent in the third quarter compared with the same period a year earlier, according to estimates from data research firm Canalys, which expects weak demand over the next six to nine months.

The iPhone 14 Plus, part of a new lineup announced by Apple on September 7, is positioned as a cheaper alternative to its more expensive iPhone Pro models. The handset was shipped to customers on October 7, weeks after the other handsets were available for purchase. The iPhone 14 series comprises four models — the iPhone 14, iPhone 14 Plus, iPhone 14 Pro, and iPhone 14 Pro Max. While the iPhone 14 and iPhone 14 Pro are the smaller models, the iPhone 14 Plus and iPhone 14 Pro Max are the ones aimed at those who prefer larger screens.

© Thomson Reuters 2022