Apple will produce fewer iPhones in response to weakening supply and demand

According to a new Bloomberg report, Apple has told suppliers that demand for the iPhone 13 range of smartphones may not be up to par with the company’s initial expectations due to supply constraints.

Apple planned to ship 90 million iPhone 13, iPhone 13 mini, iPhone 13 Pro, or iPhone 13 Pro Max units to consumers, but the company cut its production plans by 10 million phones due to a shortage of parts. Meanwhile, since the phones launched in September, consumers have had to wait two, three, or even four weeks to place orders for their iPhone 13s.

Apple initially told suppliers it would rise again to 10 million units in early 2022 once supply improved. But according to a Bloomberg report, Apple has noticed a weakening in demand, and the company no longer intends to hit that 90 million target over that time frame.

On the other hand, the disadvantage may also be due to the fact that consumers have decided that the iPhone 13 is not worth the effort, given the long wait. Or perhaps they read rumors that a major redesign with significant new features is expected in the model next year. Economic factors such as new variants of COVID-19, inflation and more can also contribute.

That being said, Apple is still on track for a strong quarter — it just might not be as big as the company and its shareholders had hoped, as the iPhone accounts for about half of the company’s revenue. And the iPhone 13 is getting easier to find in some (but not all) markets. In parts of the US, for example, some configurations now ship within a week or so, and phones can sometimes be picked up at the store.

Little is known for sure about the flagship iPhone next year, but some leaks and reports have suggested that it will have a new design and that it may ditch the charging port entirely. They also stated that Apple is unlikely to continue to offer a mini version of the iPhone as it consistently falls short of expectations as more and more consumers opt for screens.