Dec 1 (Reuters) - Apple Inc has told its parts
suppliers demand for the iPhone 13 lineup has slowed, Bloomberg
News reported https://www.bloomberg.com/news/articles/2021-12-02/apple-tells-suppliers-iphone-demand-has-slowed-as-holidays-near-kwobgrxr?sref=PFCuwcPr&utm_source=twitter&utm_content=business&cmpid=socialflow-twitter-business&utm_campaign=socialflow-organic&utm_medium=social
on Wednesday, a move that signals a declining interest among
consumers for the usually coveted latest upgrades.
The company had cut production of iPhone 13 by as many as 10
million units, down from a target of 90 million, due to a global
chip shortage, but now it has informed vendors even those
numbers look unlikely, the report said.
Apple's shares fell over 3%, dragging down those of iPhone
component and semiconductor suppliers Qualcomm,
Skyworks, Europe's ASML and Infineon
Apple and its suppliers did not respond to Reuters requests
The holiday season is Apple's biggest quarter and typically
so, for its most important product, the iPhones, which start at
$699 and go as high as $1,600.
Analysts had expected demand to remain steady for new
products, but lowered shipping estimates as supply-chain issues
burdened the company as well as many retailers who faced
Consumers, who splurged on new phones and laptops during the
peak of the pandemic as they stayed indoors, are now spending
more on vacations and outdoor activities.
"As lockdowns eased, spending returned on these experiential
activities, so may be less for the new iPhone. We believe that
(iPhone) demand is likely to be pushed out in 2022,"
Counterpoint Research analyst Tarun Pathak said.
IDC analyst Ryan Reith believed it is not so much as demand
for smartphones was drying up, but U.S. consumer spending was
slowing due to the pandemic.
Apple Chief Executive Officer Tim Cook warned in October
that the impact of supply constraints, which cost the company $6
billion in sales in the fourth quarter, will be worse during the
holiday quarter even as demand for the new lineup was robust.
(Reporting by Maria Ponnezhath and Nivedita Balu in Bengaluru;
Editing by Arun Koyyur, Vinay Dwivedi and Shinjini Ganguli)