Apple’s iPhone 12 family has triggered a second ‘super cycle’ of sales as consumers rush to purchase an iPhone with 5G capability. And Apple is taking a big gamble that this demand will continue for another year.
Writing for Bloomberg, Debby Wu and Marc Gurman note the increased order book for the iPhone 13:
“Apple Inc. has asked suppliers to build as many as 90 million next-generation iPhones this year, a sharp increase from its 2020 iPhone shipments, according to people with knowledge of the matter.”
Apple has been through a super cycle before. The launch of the iPhone 6 and iPhone 6 Plus handed the smartphone family a significantly larger screen than the previous generations especially with the iPhone 6 Plus). With the damn broken, the sales spiked, before returning to the steady upward trend of previous years.
That boost was temporary.
The iPhone 12 family has started another super cycle, as iPhone fans finally get the chance to unlock the power of 5G that Android users have known for years. Even with the financial impact of the Covid-19 pandemic the iPhone 12 has been a startling success for Tim Cook and his team.
Upping the order book is a significant gamble. It assumes that the 5G dividend in sales is going to continue and that demand will match Apple’s predictions. As we have seen during the first months of 2021, Apple’s aim has been off. Analyst data points to the iPhone 12 Mini sales failing to match Apple’s expectations and while production is coming to an end, significant stock remains of the Mini handset.
Will history repeat itself with the iPhone 13, or will the gamble pay off?
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