Apple, already suffering from a supply crunch due to the ongoing semiconductor shortage, is now simultaneously also facing slowing demand. The company told its component suppliers that it may not order as many units as previously indicated.
Apple has already cut its iPhone 13 production goal by as many as 10 million units this year, down from a target of 90 million due to the shortage in parts availability (via Bloomberg). However, the company was hoping to make up for the decline next year, which does not seem that likely anymore.
The holiday season will be supplying the company with a much-needed boost though, with analysts predicting a sales increase of 6% to $117.9 billion in the final three months of the calendar year. This still won’t be what Apple and Wall Street had envisioned though. Shortages and delivery delays have already frustrated many and several consumers have finally called it quits trying to acquire the hard-to-get iPhone 13, leading to a decline in demand.
Such consumers will likely be skipping the iPhone 13 altogether and will instead be setting their crosshairs on next year’s iPhone 14 when it goes live. After all, the iPhone 13 is only a minor upgrade over the iPhone 12, both in terms of specifications and design. The succeeding iPhone 14, on the other hand, is expected to bring along some major improvements, which has incentivized buyers to wait for it.
Apple, based in Cupertino, California, declined to comment on it all.
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