Apple warns suppliers of weakened iPhone demand

Tech giant Apple has warned component suppliers that demand for its flagship iPhone handset had weakened with the 13th iteration of its device.

Apple previously cut its 2021 iPhone 13 production goal by as many as 10.0m units, down from its original target of 90.0m due to a lack of parts. Initially, the group hoped to make up the majority of that shortfall in early 2022 as supply was expected to improve. However, the company has now moved to inform its vendors that those orders may not materialise, according to Bloomberg sources.

While it might not be the blockbuster trading quarter that Apple had originally hoped for, with both shortages and delivery delays putting customers off, the Californian firm still appeared to be on track for a record holiday trading period, with analysts predicting a 6% sales increase to $117.9bn in the final three months of the calendar year.

With inflation and the omicron variant weighing on consumer sentiment, many consumers may pass on the iPhone 13 completely and wait until 2022 to upgrade, when its successor comes out, with bigger changes expected for the next model.

As of 1010 GMT, Apple shares were down 1.84% in pre-market at $161.74 each.