iPhone Demand Flagging During Holiday Shopping Peak

iPhone 13

Apple has alerted its component suppliers that it’s seeing slower demand for its suite of iPhone 13 phones, according to a Bloomberg report, in part because shoppers are planning to wait to update their smartphones when the company releases the next version of its flagship product.

Apple cut its iPhone 13 production goal for 2021 by 10 million units as global supply chain snags have continued, dropping the target from 90 million because of a lack of parts.

Related news: Apple Eyes Cutting iPhone Production by 10M Units

Apple gets display parts from Texas Instruments and wireless components from Broadcom. Both suppliers have struggled to deliver the right amount of components to keep production of the iPhone 13 humming. One of the Texas Instruments chips that are in short supply powers the iPhone’s OLED display. Other suppliers have reported additional shortages.

Although parts may be more readily available next year, Apple is now less confident about demand escalating.

Despite lower demand, Apple could still achieve record sales this holiday shopping season, with projections for a 6% increase to almost $118 billion in the last three months of 2021. That’s less than Apple and Wall Street insiders had expected from the tech behemoth, though.

Apple is expected to roll out more major upgrades in its next iPhone line compared to the minor tweaks it made for the iPhone 13 models compared to the iPhone 12.

iPhone sales were responsible for about half of Apple’s $365.8 billion revenue total in 2020. CEO Tim Cook told analysts during an earnings call in October that demand for new products, such as the latest iPhones, iPads and other devices, was “very robust” and that the company should achieve record quarterly sales.

See also: Apple Says Supply Chain Woes Cost $6B in Fiscal Q4; Expects Shortages to Get Worse