Last year, Apple IncIt is estimated that about 100 million iPhone parts will be needed by the first half of 2021. Now the tech giant is cutting all planned iPhone production, according to a new report.
According to industry sources,Apple Inc asked suppliers to reduce production by 20 per cent compared with December's plan. The main product to be cut is the iPhone 12 mini, the cheapest 5G phone in Apple Inc's product line."some suppliers have even been asked to suspend production of mini-specific components for the time being."Apple Inc is estimated to cut planned production of the smartphone by more than 70 per cent in the six months to June.
Apple Inc aims to sell about 75 million iPhone units in the first six months of this year, down from the initial estimate of 96 million-100m.IPhone shipments are expected to be slightly higher during this period than in the same period last year.Overall, the company plans to produce 230 million iPhone units in 2021, an increase of about 11 per cent over last year.
"this year is not bad, but of course, demand in the first half of 2021 is not as high as people thought at the end of last year."
According to previous media reports, the iPhone 12 mini is expected to account for about 5 per cent of Apple Inc's smartphone sales in the first half of the year. This is down from 10-15% at the end of last year.
Another said that due to weak demand for the new mini iPhone, "some parts of mini have been reassigned to iPhone 12 Pro and iPhone 12 Pro Max."
Apple Inc CEO Cook "misjudged the needs of iPhone 12 Pro and iPhone 12 mini," Jeff Pu, a senior smartphone analyst, said in an interview with the Nikkei.
Consumers don't immediately have a very strong sense of the difference in core processor and 5G wireless communication performance, but they can immediately see the difference in screen size. If the price is about the same, many consumers would rather choose the older iPhone 11 with a larger screen because they don't expect much from the 5G. "
Apple Inc analysts who predict that iPhone will usher in a new "supercycle" seem to be wrong, as the ongoing global epidemic is eroding consumers' pockets. However, all that could change if Americans decide to use their stimulus checks to buy Apple Inc products.