Apple is cutting orders for all iPhones by around 20% for the first half of the year compared to its plans in December, according to Nikkei Asia. Majority of the order cuts come from iPhone 12 mini, its cheapest 5G-enabled phone.
The planned cuts are part of the broader adjustment to the tech giant’s output plans formulated late last year.
Late last year, Apple told suppliers to secure components and parts for up to 96 million handsets, including the entire iPhone 12 series for the first six months of 2021.
Apple now targets production of around 75 million units, slightly higher than iPhone shipments in the same period last year.
The tech giant informed suppliers it will still build 230 million iPhones for 2021, an increase of more than 11% from late last year.
The biggest revision is reportedly for components and parts for the 5.4 inch iPhone 12 mini, currently retailing at around $699.
The downward revision is considered a correction of Apple’s previous aggressive booking of components and parts in the era of limited supply of chips, print circuit boards, displays and other resources.
Despite production cuts, Apple still maintains a full-year outlook of producing around 230 million iPhones, an 11.6% jump from last year.
Apple stock is currently declining. AAPL: NASDAQ is down 0.050% on premarket.
