Apple will be cutting production of its iPhone 12 Mini as demand has been low, a report from Nikkei Asia says.
The U.S.-based tech giant will be slashing orders for all iPhones by around 20 percent, according to the report, compared to December plans. Late last year, Apple told suppliers to secure components for up to 96 million handsets, including the entire iPhone 12 series for the first six months of this year.
That was slated to be the first 5G enabled lineup, and also included the older iPhone 11s and iPhone SE models. But, target numbers are significantly lower now, with the company now estimating numbers of around 75 million units. The company says it still wants to build 230 million iPhones this year, which would be an 11 percent boost from last year.
“This year is still not bad, but of course demand for the first half of 2021 is not as high as people were thinking at the end of last year,” another person told Nikkei, according to the report.
The biggest revision, according to Nikkei Asia, is for components and parts of the 5.4 inch iPhone 12 mini, sources said, which retails for around $699. Some suppliers have been asked to stop building components for the mini for now, according to one source. According to the mildest estimates, Apple will end up cutting production more than 70 percent through June.
Last year amid the pandemic starting, Apple also delayed production for its products. The company usually kicks up production for the summer months in anticipation of busy fall sales, but it delayed things in the wake of COVID-19, starting a month or so later than usual. The company cited weakening supply chains in Asia and lesser demand all around the world. There were four new iPhones coming out, with three sizes and some including light-emitting diode screens. Some came with 5G.
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