apple warns suppliers iphone 13 demand is falling ahead of the holidays

The first orders lands next Friday, September 24. Photo: Apple

Apple is warning component suppliers that demand for iPhone 13 has weakened, according to a new report that cites people familiar with the matter.

Cupertino’s newest smartphone lineup got off to an incredibly strong start when it landed. But thanks to chip shortages that have made some models difficult to obtain, consumers appear to be avoiding them altogether as the holidays near.

Demand for iPhone 13 has fallen

Apple has already been forced to cut iPhone 13 orders once this year due to the difficulty of obtaining components. It had initially planned to produce as many as 90 million units by the end of 2021, but it cut as many as 10 million.

“The hope was to make up much of that shortfall next year — when supply is expected to improve,” Bloomberg reports. “The company is now informing its vendors that those orders may not materialize.”

The concern for Apple now could be that some customers decide to just skip iPhone 13 altogether and wait for next year’s refresh. Bloomberg notes that bigger changes are expected in 2022, giving fans another reason to wait.

Apple still on track for record sales

Apple, like many other companies in the technology industry, has faced difficulties obtaining certain components — especially chipsets — in large numbers as a result of ongoing shortages.

CEO Tim Cook warned during the company’s last earnings call that supply constraints are currently Apple’s biggest challenge, and they’re expected to continue throughout 2022.

It’s not all bad news, however. Despite the drop in demand, Apple is still on track for a record holiday quarter, with analysts expecting revenue to hit $117.9 billion — a 6% increase over the same period last year.

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