Demand Slowing For iPhone 13
Apple stock dropped 1.6 per cent as the tech giant faces a new problem: lack of demand.
News leaked that Apple told its suppliers that demand for the iPhone 13 lineup has dried up, bad news for a company that earns around half of its A$517 billion in yearly revenue from iPhone sales.
Apple had previously cut iPhone production goals from 90 million units to ‘just’ 80 million, but this was a decision made due to component shortages, with the company expecting to make up these sales in 2022 once supply picks back up.
Now Bloomberg News is reporting that Apple have gone to its suppliers warning that projections may not be as large as initially promised.
Despite this, analysts are still predicting a record holiday season for Apple, with a sales increase of 6 per cent to A$166 billion for the December quarter.
This is despite Tim Cook telling investors in a recent earnings call that the shortfall in components would cost the company US$6 billion in revenue this holiday season.
Maybe the sheen has worn off, also.