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An analyst note earlier this week suggested that production of mini iPhone 12s for this quarter was cut by 2 million units in response to disappointing sales. He said that was offset by better-than-expected sales of the more expensive iPhone 12 Pro, and that Apple was increasing production by the same amount.
A new supply chain report today echoes this and provides a bit more detail …
Digitimes said cuts are being made to Pegatron’s production thanks to reduced demand in two regions.
Lower-than-expected sales for the iPhone 12 mini in the US and Europe have reportedly prompted Apple to ask its manufacturing partner, Pegatron, to cut production of the smartphone model. […]
Pegatron has seen a slowdown in orders for the iPhone 12 mini, with sales of the model in the United States and Europe being negatively affected by the COVID-19 pandemic, industry sources say.
If that’s correct, that’s good news for Apple. Even though the margins are the same, the company is making more money with the more expensive model, and the Pro is likely to have higher margins as well.
Apple would have been pleasantly surprised by the demand for the iPhone 12 range as a whole, and the two Pro models in particular. Kuo said his sources indicated that demand was evenly distributed between the iPhone 12 and iPhone 12 Pro – when we normally expected higher demand for the cheaper model. This was supported by a supply chain report indicating that Apple was increasing orders for LiDAR scanner components, which are only present in Pro models.
Demand for the iPhone 12 Pro has been so strong that manufacturers’ delivery times have had to be extended. And Apple is set to step up orders for VCSEL chips that support the iPhone 12 Pro’s LiDAR scanner for immersive augmented reality (AR).
Apple continues to promote the photographic capabilities of the new line.
The iPhone 12 line offers advanced camera systems and, with the A14 Bionic – the fastest chip in a smartphone – powerful computer photography capabilities for all users. Photographers around the world are using the iPhone 12, iPhone 12 mini, iPhone 12 Pro, and iPhone 12 Pro Max to capture stunning images of cityscapes, landscapes, people, and more, day to day. evening.
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