Apple has begun switching production of the iPhone 12 mini to the iPhone 12 Pro to meet demand for the premium smartphone, according to a Morgan Stanley investment note.
The note found that sales of the iPhone 12 and iPhone 12 Pro were better than expected, though the iPhone 12 mini saw significantly lower sales than Apple had hoped for. Now, to help keep up with the demand for the Pro version of the smartphone, Apple is cutting down on the number of iPhone 12 mini devices it makes, in an unprecedented move for the firm.
“We continue to believe that the iPhone will outperform expectations in the December quarter, as the mix shift to higher-end iPhone 12 models is a tailwind to ASPs and revenue growth,” the note reads. “iPhone 12 Pro lead times remain extended far beyond any model launched in the past 4 years at 10 days. Lead times decreased from 22 days ~2 weeks ago as Apple ramps iPhone 12 production […] recently raising March quarter iPhone 12 Pro builds by 2M units (which offset a 2M build reduction for the iPhone 12 mini).”
What’s particularly interesting is that the new lineup is beating Apple’s expectations in markets such as China and Taiwan, which have traditionally been difficult for Apple to crack.
“In China, we believe lower-end iPhone 12 models are performing better than in the US, and we estimate iPhone shipments grew ~47% Y/Y in the December quarter […] reaching a new 18 month high of 20.3% market share, driven in large part by the adoption of the iPhone 12, which has captured the most iPhone installed base share of any iPhone launched in China over the past 4 years through the first full month after being launched,” the report reads.
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