IPhone 13: sales decline before Christmas, despite a successful launch

Apple has likely indicated to its component suppliers for the iPhone 13 that it may not order as many units as expected due to lower demand, according to a Bloomberg report.

Until now, Apple has been limited by the number of iPhone 13s that can be assembled from the available parts and not by demand, but a new report from Bloomberg says Apple doesn’t expect customers who experience long wait times keep their interest when supply resumes.

Indeed, Apple expects demand to decline, despite the approach of the Christmas holidays which could have boosted sales. Apple has reportedly already cut production targets by nearly 10 million units due to chip shortages caused by a spike in COVID-19 cases around the world, as well as energy use restrictions in China . Apple already expected to sell fewer iPhone 13s due to the component shortage, but ultimately it is customer demand that appears to be slipping.

Apple doesn’t expect to sell as much as expected

The Bloomberg report says Apple previously aimed to fill the shortfall in 2022, when supply improves. However, the company has informed its suppliers that it may not get as many orders as expected. According to a previous DigiTimes report, iPhone 13 out-of-stocks should have continued until February 2022, but it appears that the situation is already improving in some countries.

At launch, the available models of iPhone 13 and iPhone 13 Pro sold out quickly, and for several weeks after launch, shipping times were quite long. Tim Cook said on a conference call that Apple was “working hard” to increase iPhone 13 stocks, and it looks like stocks are finally catching up with demand. In some countries, it is possible to order an iPhone 13 and receive it the following week or within two weeks, whereas previously you had to wait much longer.

Despite weakening demand, Apple is still expected to experience a significant increase in sales in the last three months of 2021. We know, for example, that thanks to the iPhone 13, Apple has become number 1 in the smartphone market in China.

Source: Bloomberg