Apple is cutting way back on its iPhone 12 production, grabbing the reins on the excitement over its latest version. But despite the move, the company will be just fine.
People just aren’t crazy about the iPhone 12 Mini, with the overall demand trending toward phones with bigger screens.
The focus of the cutback is the smallest version of the 12, according Nikkei Asia, being reduced by 70 percent or more in the first half of this year – easily leading the products in Apple’s 20 percent cut in overall iPhone production.
Production of the components for the mini version is being stopped at some suppliers, Nikkei said, with other parts redirected to the Pro and Pro Max.
With sales of the iPhone down this year, two new Apple Silicon MacBooks – Nikkei did not specify which models – have seen their production window changed from May or June to later in the year.
And now the good news for Apple and its stockholders:
The production of iPhones is expected and scheduled to be up overall compared to 2020: 75 million handsets in the first half of the year, and 230 million phones over the course of 2021.
Wedbush Securities analyst Daniel Ives on Wednesday reiterated his outperform rating in an Investor’s Business Daily story.
He has a 12-month price target of 175 on Apple stock, which hit its record high of 145.09 on Jan. 25 but was at $119 around noon ET Wednesday.
Ives added Apple stock to the firm’s “best ideas list,” saying the recent pullback in shares represents a “great entry point.”
The build plans for the iPhone 13 series look strong, Ives said, adding that Apple is likely to announce the next-generation iPhones in September.
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