Key Apple Supplier From Japan Sees Demand Correction, Fears Migrating Production To China Over Security Concerns

Murata Manufacturing Inc MRAAF MRAAY expects Apple Inc AAPL to curtail iPhone 14 production further in the coming months because of weak demand.
"Judging by handset availability in stores, I see a downward revision happening," Murata President Norio Nakajima said in a Bloomberg interview. "I hope that it won't be too deep."
Nakajima's comments reflect slowing consumer spending due to rising interest rates, elevated inflation, and sputtering economic growth.
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Apple has pruned iPhone output as demand weakened and may slash production further.
Supply-side problems did not bother Murata as it could recoup production in January and February, said Nakajima. Demand-side weakness is a concern, he said.
Nakajima said Chinese handset makers' incoming models lacked enticing new features.
He expected the phone market to start recovering "at a gradual pace" in the fiscal year beginning in April.
Nakajima ran a long-term project to build a production chain for Murata that operated entirely in China, using local parts.
Murata makes 65% of its products in Japan.
Nakajima expressed bullishness over China's prowess in semiconductor technology. However, he was wary about migrating production to China, including high-frequency devices and communication modules, due to his concerns over confidential information security.
Price Action: AAPL shares traded lower by 1.51% at $140.75 premarket on the last check Friday