This Year will see Apple Producing Fewer iPhones
Supply chain disruptions, Covid, and inflation may play a part, but the fact that the iPhone 13 wasn't great may play a part as well...
Apple has reportedly told suppliers that demand for the iPhone 13 line may fall short of the original expectations due to supply chain constraints, according to Bloomberg.
The plan was to ship 90 Million iPhone 13, iPhone 13 mini, iPhone 13 Pro, or iPhone 13 Pro Max devices to consumers, but those numbers are being cut by nearly 10 Million due to part shortages. On the flip side, consumers have faced excessive wait times on their iPhone 13 orders. Some have even waited up to a whole month since the September launch.
Vendors were told it would make up the 1 Million units again in early 2022 or whenever supply has improved. however, Apple realized that there was in fact weakening demand, and the company will no longer reach the 90 Million target.
A number of things can be the explanation for the demand shortfall. It’s possible that consumers saw the iPhone 13 as an inadequately major update over the iPhone 12. iPhone 12s sold very easily. Apple had hit a supercycle. The iPhone 13 offered marked camera and battery life improvements but nothing else.
The shortfall can also be due to consumers having decided an iPhone 13 is not worth the effort to obtain. As mentioned, some individuals were waiting upwards of a month after launch. They also may have read rumors that next year’s model is expected to be a major redesign.
More contributions may be the Covid variant disruption, inflation, and more.
Even with this slip-up, Apple is still on pace for a very strong Q2. iPhones still account for about half of the company’s revenue, so the quarter may not be as huge as many had expected and hoped.
Nobody knows what Apple has up its sleeve for next year’s iPhone, but some leaks suggest it will have a completely new design and that it may drop the charging port entirely. There are also rumors that Apple is unlikely to continue offering the mini version of the iPhone.