Bad luck for Apple which will have to reduce the production of its iPhones, including the latest iPhone 12s, for the first half of 2021. According to our colleagues at Nikkei Asia, the manufacturer has reduced requests for components from its suppliers by 20%, compared to its initial schedule last December. While the production of iPhone 12, 12 Pro and 12 Pro Max is not expected to experience a significant drop, this will not be the case for the iPhone 12 mini, whose production drop could exceed 70% until the month of June.
Thus, some components intended for the iPhone 12 mini will be used for the production of other versions of Apple’s smartphone. In addition, the manufacturer would have asked certain suppliers to stop delivering specific components for the small version of the iPhone 12.
According to sources cited by Nikkei Asia, orders for iPhone 12 mini only represent 10 to 15% of total orders for iPhone 12 for the year 2020. The small smartphone would be shunned by consumers, especially because of its battery smaller. In addition, customers would not be interested in 5G and would prefer for the same price to go for an iPhone 11, which benefits from a larger screen.
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Initially, the manufacturer had planned the production of 96 million iPhones for the first half of 2021 (iPhone 11, iPhone 12 and iPhone SE) and had even considered ordering components for a total of 100 million units. Now, Apple is targeting only 75 million iPhones, a figure that remains slightly higher than that of iPhone shipments in the first half of 2020 (74.3 million units according to IDC).
Apple, however, plans to produce around 230 million iPhones for the year 2021, which is an increase of 11.6% from last year.
Source : Nikkei Asia