Apple has cut production of all iPhone models by an average of 20% for the first half of 2021, with the iPhone 12 mini’s production cut by almost 70% as per some estimates. These percentages are compared to the December quarter, which usually sees the most sales during a year.
iPhone 12 mini woes continue with Apple cutting production by 70%
As per a new report by Nikkei Asia, Apple is looking to sell 75 million iPhones during the first half of the year, which is higher than the iPhone shipments from last year. The company has told its suppliers that it intends to produce 230 million iPhones in 2021, which includes not only iPhone 12 line-up but also iPhone SE, iPhone 11, and other older models that are still sold in many markets. This would be an 11% increase year-over-year.
Nikkei Asia notes that Apple’s production cuts are not as per expectations by industry watchers, after the blockbuster fourth quarter of 2020. Apple has been selling iPhone 12, iPhone 12 Pro, and iPhone 12 Pro Max models like hotcakes, while iPhone 12 mini, as reported by many other sources too, has seen less demand. Despite this, some reports have said that Apple intends to ship iPhone 13 mini this year.
The major reason for users to not opt for iPhone 12 mini over other models is primarily due to the smaller 5.4-inch screen. Customers also stay clear of smartphones that have a smaller battery size. Despite Apple’s energy-efficient chips, the smaller battery in iPhone 12 mini simply cannot hold up against its larger siblings. Nikkei Asia reports that only 12%-15% of iPhone 12 orders allocated to the mini during December 2020.
Due to low demand for the mini, Apple has reallocated component production that was previously reserved for it, to the larger iPhone 12, iPhone 12 Pro, and iPhone 12 Pro Max models. The company is still seeing healthy demand for these models thanks to the new design and 5G.
A recent report by Counterpoint Research had suggested that iPhone 12 mini only accounted for 5% of sales in the first half of January 2021. Other sources like DigiTimes have also reported that Apple was increasing iPhone 12 Pro production while cutting down iPhone 12 mini’s production. CIRP also said that sales for the mini were slow, while Flurry Analytics shared that the mini was the least popular launch week iPhone model in the past three years.
2 comments