In addition to supply constraints, Apple is facing another problem that could impact its Holidays sales, a reduction in iPhone 13’s demand. Bloomberg reports that the tech giant has notified suppliers that demand for its latest flagship iPhone series is slowing down because consumers are tired of waiting for the high-end iPhone 13 Pro models.
Apple introduced subtle but significant upgrades in iPhone 13 with advanced features sensor-image stabilization, Cinematic mode, and Photographic Styles across the series. And 120Hz ProMotion display, Macro Photography, and ProRes videography features are introduced in iPhone 13 Pro models. Unfortunately, the global chip shortage is extending the smartphones’ delivery date which is likely the reason for consumers’ diminishing interest in the latest iPhone series.
Consumers waiting for Apple’s 2022 iPhone series are willing to skip an upgrade to iPhone 13
Buyers, frustrated with shortages and delivery delays, are willing to skip iPhone 13 series and looking forward to the 2022 iPhone series to upgrade. As per the report, the current flagship series is not considered a worthy upgrade because of its slightly better design and features than iPhone 12.
The company is still on track for a record holiday season, with analysts projecting a sales increase of 6% to $117.9 billion in the final three months of the calendar year. But it won’t be the blockbuster quarter that Apple — and Wall Street — had originally envisioned. Shortages and delivery delays have frustrated many consumers. And with inflation and the omicron variant bringing fresh concerns to pandemic-weary shoppers, they may forego some purchases.
That could mean skipping the iPhone 13 altogether and waiting to upgrade next year, when its successor comes out. The current lineup, which starts at $799 for the standard model and $999 for the Pro, is considered a modest update from the iPhone 12, which had a whole new design. Bigger changes are expected for the 2022 model, giving some shoppers a reason to wait.
The company is expected to make a record $120 billion revenue in the Holiday season, but analysts predict that supply chain constraints will drastically impact the company’s Holidays quarter. Reportedly, Apple has cut iPhone 13 production by 10 million due to components shortage faced by its suppliers and is sustaining iPhone 13’s production by reducing iPad’s production by 50% to utilize tablets components in new iPhones. Having said that iPhone 13’s strong demand, earned Apple the #1 smartphone brand spot in China.