Apple cut orders for iPhones by 20%, according to a report from Nikkei Asia on Wednesday, due to decreased demand for its smallest iPhone 12 mini model.
Apple's new iPhones are still in high demand. Apple plans to build 230 million iPhones in 2021, up 11.6% from 2020, according to Nikkei Asia. But, the iPhone 12 mini isn't selling as well as expected as consumers gravitate to either the older iPhone 11, which has a bigger screen, the larger iPhone 12 or the more premium iPhone 12 Pro models.
Apple shares were slightly negative in premarket trading Wednesday. Shares were up more than 4% on Tuesday.
The consumer sentiment seems to reflect reviews of the phones when they first launched in November. CNBC, for example, said the iPhone 12 mini is basically just a smaller version of the iPhone 12 with worse battery life. And while it's compelling for people with smaller hands, most consumers should just spend the extra $100 for the iPhone 12, which has better battery life and a larger screen.
The iPhone 12 models have largely been successful for Apple, however. Apple no longer discloses how many iPhones it sells each quarter but, in January, research firm IDC said Apple shipped 90.1 million devices during the fourth quarter of 2020, the "highest shipment volume from a vendor in a single quarter," and helped lead Apple to the top phone seller in the world, ahead of Samsung for the quarter. Apple iPhone revenue for the quarter was up 17% year-over-year, too.
That momentum behind the iPhone 12 helped Apple book a record holiday quarter in 2020, bringing in more than $100 billion in a quarter for the first time in the company's history.
Apple was not immediately available to comment.
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