The cheapest 5G phones. Apple acknowledges low demand for iPhone 12 Mini

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U.S. tech giant cut orders for all iPhones by nearly 20% compared to plans last December

Apple has reduced its planned iPhone 12 mini production for the first half of this year, part of a broader modification of its production plans late last year, according to reports from the Nikkei Asian Review.

The U.S. technology giant has reduced orders on all iPhones by about 20% compared to its plans last December, with the majority of the discount coming on the mini phone, the cheapest phone to support Apple’s 5G network.

Late last year, Apple asked suppliers to secure components and parts for up to 96 million phones, including the entire iPhone 12 lineup for the first 6 months of 2021, and the total also included the older iPhone 11 and iPhone SE models.

At one point, Apple told some suppliers that it needed components for more than 100 million iPhones for the first half of the year, in an effort to secure components and production capacity amid global shortages.

The company now aims to produce about 75 million units, slightly higher than iPhone shipments in the same period last year.

The company informed suppliers that it still plans to manufacture 230 million iPhones for 2021, an increase of more than 11% over the previous year.

Planned production of the iPhone 12 Mini will be reduced by 70% or more in the first half of this year, with some suppliers being asked to temporarily stop producing small components for the small phone, while others have been reassigned to the iPhone 12 Pro and iPhone 12 Pro Max.

The review reflects a correction to Apple’s previous strong reservation of components and parts, at a time when makers of smartphones, computers, servers, cars and others were preparing to fight for limited supplies of chips, screens and other resources.

Consumer purchasing decisions seem to have been influenced by phone reviews when they were first launched in November, for example cNBC reported that the iPhone 12 Mini is basically just a smaller version of the iPhone 12 with worse battery life.

Although convincing for people with small hands, most consumers prefer to spend an extra $100 for the iPhone 12, which has better battery life and a larger screen.

The iPhone 12 models were largely successful for Apple, which no longer reveals the number of iPhones it sells every quarter, but in January, research firm IDC said the company shipped 90.1 million devices during the fourth quarter of 2020, the « largest shipment from a seller in a quarter » of the year, which helped apple take the lead in world phone sales ahead of Samsung. Apple’s iPhone revenue rose to a quarter by 17% year-on-year as well.

Source: Websites

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