Apple makes plans for big 30% spike in 2021 iPhone demand

Apple has requested its suppliers manufacture 230 million iPhones for sale in 2021, according to Nikkei/Reuters – that’s up 20% year-on-year and seems to reflect global demand.

iPhone 12 is being snapped up

Apple’s plans see 95-96 million iPhones manufactured in the first half of the year, which is up 30%, reflecting the usual spike in sales in this period. Across the year, Apple is aiming for 230 million iPhone sales across 2021, though it isn’t quite clear if this figure will include any new models it may introduce that year.

The company has apparently placed orders across all its iPhone 12 models, and is also requesting further quantities of iPhone 11 and the 2020 model of iPhone SE.

There may be some problems in the chain, principally around component supply, but the company is expected to figure that challenge out, as it usually has in the past.

What’s in demand?

Apple’s supply chain suggests demand for the iPhone 12 Pro and 12 Pro Max to be stronger than anticipated, iPhone 12 demand is in line with expectations, while iPhone 12 mini saes are described as “sluggish”.

Wasted chances

Has the iPhone 12 mini failed? I’d consider this a rare misstep from the company, for after building years of pent-up demand for a smaller model iPhone the company introduced the iPhone SE in 2020 which scooped up that demand while buoying mid-pandemic smartphone sales. When it came to a chance to buy an iPhone 12 mini, many who might have made that purchase had already acquired an SE 2020. I’d speculate this may yet turn into a carrier replacement spike in smaller iPhone sales in the latter half of 2021 as those who signed a deal for an SE upgrade to the 5G 12 mini. Perhaps someone out there will remember I said this and let me know if I was correct.

But overall health

Analysts globally will be thinking about Apple’s iPhone sales this year. News its forecasts currently see a 30% uptick suggests a really strong year ahead – though it’s important to consider that COVID-19 has dented sales in 2020. In addition to which, Apple has changed its sales requirements in the past. Most recently reducing orders for 2020 due to the virus.

Photo by Kelly Sikkema on Unsplash

The first 5G iPhones, previous reports have declared a super-cycle of demand, and this isn’t impossible given the slight slump in the 2020Q4 quarter, with global reports suggesting a big uptick in interest once iPhones hit the shops in Q1FY2021. We’ll get a little more insight into this likely at the end of January when the company announces its results, but it looks like 5G has helped Apple hold steady, reverse declining demand, and maintain market share even as others in the space suffer in the current pandemic hit economy.

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