Apple already has supply problems with the iPhone 13. Is it facing demand problems as well?

That seems to be the conclusion of a Bloomberg report based on sources from Apple's supply chain.According to Bloomberg, after cutting production orders for this year's iPhone 13 due to parts shortages, Apple now if iPhone supply returns to normal levels, iPhone 13 demand may also weaken rather than increase, according to the report, telling component suppliers.

If reports of weakening demand are true, this would run counter to expectations for the iPhone 13. After last year's record sales for the iPhone 12, analysts had expected continued strength for Apple's new phone due to an increase in customers demanding 5G-enabled phones. according to a Bloomberg article, Apple is on track to meet the consensus forecast of $118 billion in total sales for the year-end shopping season. consensus forecast, but iPhone 13 sales will not be as spectacular as predicted.

And if so, why has demand for the iPhone 13 been sluggish?

The supply issues that have plagued Apple this fall, and that the company warned about in its last earnings call with Wall Street analysts, may have come home to roost. iPhone 13 and iPhone 13 mini orders are now shipping in a couple of days, while iPhone 13 Pro and iPhone 13 Pro Max take a week or two to ship from the factory. And that is actually an improvement over the time we were seeing earlier this week.

Those who would be iPhone customers, those who have been putting off ordering the phones, may see the delay and completely reconsider buying an iPhone in 2021. some may find the new iPhone in 2022 worth the wait. iPhone 14 won't be until fall. While not expected, if rumors of Apple's plans are accurate, a new version of the iPhone SE could ship in the first three months of this year.

Apple's supply and demand woes come at a time when the U.S. economy is facing a common challenge, especially in the form of inflation. prices for the iPhone 13 model have not risen, but other prices have. Consumers may therefore be wary of spending $699 to $1,099 on a new phone, even if Apple offers discounts on trade-ins of older phones.

At least Apple can take comfort in the fact that it's not the phones themselves that are preventing people from buying; all four iPhone 13 models have debuted to stellar reviews - we currently rank the iPhone 13 Pro Max as the best phone you can buy ranking the iPhone 13 Pro Max.

More importantly, the comparison between the iPhone 13 and iPhone 11 shows how much has changed in the last two years: the upgrade to the iPhone 13 represents a very dramatic improvement over the phones Apple released three to four years ago. (See the iPhone 13 Upgrade Guide for a specific breakdown of the features you get depending on the model you currently own.)

Another thing worth keeping in mind: while the iPhone 13 supply issues are very real, concerns about demand may be overstated. Avi Greengart, principal analyst at Techsponential, "Individual pullbacks in a complex and diverse supply chain are normal and not a good indicator of low demand," Avi Greengart, principal analyst at Techsponential, said when I When I asked, he cautioned.

Apple will not announce the results of its year-end sales season until the end of January, when it releases its first quarter results for fiscal year 2022. Only then will we know for sure how much of a hit the iPhone 13 actually is.