A Morgan Stanley investment note from earlier this week indicated Apple had cut iPhone 12 mini production for this quarter by 2 million units, due to disappointing sales. The report said better-than-exected sales of the more expensive iPhone 12 Pro had offset iPhone 12 mini sales, and Apple was moving production capacity away from the mini to the Pro.
A new supply chain report from Digitimes jibes with the earlier report. The report says the cuts in iPhone 12 mini production are due to less-than-expected demand in the U.S. and Europe. The lowered sales of the mini are said to be due to the COVID-19 pandemic, say industry sources.
While mini sales are disappointing, it’s a blessing in disguise for Apple as the company makes more per sale on the pricier iPhone 12 Pro, and it’s likely that margins are also higher on the Pro.
Pegatron is the main producer of the iPhone 12 mini, and the reduced demand for the device is at the Taiwanese manufacturer’s expense.
Meanwhile, a separate DigiTimes report today indicates that expected to see extra momentum in the first quarter of 2021 thanks to Apple increasing orders for the iPhone 12 Pro series.