iPhone 12 mini production cut – another supply-chain report

An analyst note earlier this week suggested that iPhone 12 mini production for this quarter had been cut by 2M units in response to disappointing sales. It said this had been balanced by better-than-expected sales of the more expensive iPhone 12 Pro, and that Apple was upping production of this by the same amount.

A new supply-chain report today echoes this, and provides a little more detail …

Digitimes says that the cuts are being made to Pegatron production thanks to reduced demand in two regions.

Weaker-than-expected sales for the iPhone 12 mini in the US and Europe reportedly has prompted Apple to have its manufacturing partner, Pegatron, reduce production for the smartphone model […]

Pegatron has seen a slowdown in orders for the iPhone 12 mini as sales of the model in the US and Europe are affected negatively by the COVID-19 pandemic, according to industry sources.

If accurate, it’s good news for Apple. Even if margins are identical, the company makes more money from the pricier model, and it’s likely that the Pro has higher margins too.

Apple was reportedly pleasantly surprised by demand for the iPhone 12 lineup as a whole, and by the two Pro models in particular. Kuo said his sources indicated that demand was split evenly between the iPhone 12 and iPhone 12 Pro – when we’d normally have expected greater demand for the less expensive model. This was backed by a supply-chain report stating that Apple was boosting orders for LiDAR scanner components, which are present only in the Pro models.

Demand for the iPhone 12 Pro has been so strong delivery lead time from manufacturers has had to be extended. And Apple is set to increase orders for VCSEL chips supporting the iPhone 12 Pro’s LiDAR scanner for immersive augmented reality (AR).

Apple continues to promote the photographic capabilities of the new lineup.

The iPhone 12 lineup delivers advanced camera systems, and with A14 Bionic — the fastest chip in a smartphone — powerful computational photography features to all users. Photographers around the world are using iPhone 12, iPhone 12 mini, iPhone 12 Pro, and iPhone 12 Pro Max to capture stunning images of cityscapes, landscapes, people, and more, from day to night.

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