Apple Inc is dropping plans to increase production of its new iPhones this year after an anticipated surge in demand failed to materialise, Reuters reported citing Bloomberg News on Tuesday.

The company told suppliers to curtail efforts to increase assembly of its flagship iPhone 14 product family by as many as 6 million units in the second half of this year, Bloomberg reported.

Instead, the Cupertino, California-headquartered company will aim to produce 90 million handsets for the period, nearly the same number as a year ago and in line with Apple's original forecast this summer, the report said.