AirPods maker says it has suspended assembly of one of its products

Goertek Inc, which supplies companies such as Apple, Samsung and Xiaomi, has reduced its production rate. The company reported about it after Apple announced the suspension of production by a major foreign client.

The Chinese company decided not to disclose information about its client or its product. Goertek also warned that such a decision could result in major financial losses in 2022. According to the company, losses could amount to 3.3 billion yuan ($456 million).

Goertek's announcement fueled speculation that Apple, battling both production disruptions and falling demand for electronics, may be retooling its sprawling supply chain centered on China.

As consumers cut back on spending due to the possibility of a potential economic downturn, Apple and its peers have begun to tackle volatile demand for electronics all around the world.

According to Bloomberg News, the production of iPhone 14 smartphones will decrease.  Apple expects to produce at least 3 million fewer smartphones this year than originally anticipated.