A new report says Apple is still struggling to keep up with demand for the iPhone 12 Pro.
Estimates suggest that the iPhone 12 lineup overall became a huge hit for Apple, the most popular since the iPhone 6, thanks to its new design, improved cameras, 5G networks, and an even faster A13 chip.
Morgan Stanley analyst Katy Huberty breaks it down in a new investor note (via Ped30):
We continue to believe that the iPhone will beat expectations in the December quarter, as the mix shift to higher-end iPhone 12 models is a headwind for ASPs and revenue growth. The delivery times of the iPhone 12 Pro extend far beyond any model released in the last 4 years to 10 days. Delivery times decreased from 22 days ~ 2 weeks ago as Apple accelerates production of the iPhone 12 pointed out by our iPhone supply chain team, led by Sharon Shih, who recently increased the builds of the iPhone 12 Pro for the quarter from March by 2 million units (which offset a 2 million build reduction for the iPhone 12 mini).
The new iPhone is so popular that the Cupertino company will reportedly cut first-quarter production of the iPhone 12 mini by two million units and increase production of the iPhone 12 Pro by the same amount, the note read.
Although the lower tier models do not meet sales targets in the US, Morgan Stanley’s investment report mentioned that they are doing well in international markets. “In China, we believe that lower-end iPhone 12 models are performing better than in the US, and we estimate that iPhone shipments grew ~ 47% year-on-year in the December quarter.”
Given that the mini is not performing as well as expected in the US market, we are curious to see if Apple plans to include the mini in its next iPhone 13 lineup.