Apple may have a Problem with iPhone Demand as well as Supply

Apple iPhone
Photo Credit: The Verge

According to a Bloomberg story, Apple is hinting to its iPhone 13 component suppliers that it may not order as many devices as projected due to a dip in demand.

While the corporation had already reduced orders for the year to 80 million from a target of 90 million, it was said to be intending to make up for much of the shortfall the next year. However, Apple is alleged to have informed manufacturing partners that this may not be the case and that they may not see the anticipated increase in orders.

Apple has been battling with supply challenges caused by the worldwide semiconductor shortage, much like practically every other technological business. Apple’s last quarterly earnings took a $6 billion blow owing to the shortage and the impact of COVID-19 on manufacturing in Southeast Asia, according to CEO Tim Cook, and the company expects an even bigger hit this Christmas quarter.

If Bloomberg’s report is correct, though, the iPhone 13 range may not match Apple’s early goals even if supply is not a problem. Apple generally orders roughly 75 million iPhones for the year of debut, so the previous intention to build 90 million phones for 2021 represented an expectation of greater demand.

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