"With Vaccine Rollout... iPhone Production Nears 223 Million Units This Year, Up 12.3%"

Production Halt of iPhone 12 Mini Mentioned Amid Poor Sales

Rendering image of the Apple iPhone 13 scheduled for release in the second half of the year

[Asia Economy Reporter Joesulgina] Recently, as COVID-19 vaccinations have spread in major Apple markets such as the United States and Europe, it is forecasted that iPhone production in 2021 will approach a total of 223 million units. This represents an increase of more than 12% compared to last year, which was severely impacted by COVID-19.

Market research firm TrendForce announced in a report on the 21st (local time) that Apple's smartphone production in 2021 is expected to increase by 12.3% year-on-year to 223 million units. The report stated, "As COVID-19 eases in major iPhone markets such as the United States and Europe, economic recovery is anticipated," adding, "Sales of the new iPhone will also begin in earnest in the second half of the year." The new iPhone, tentatively named iPhone 13, is likely to be released in September.

Annual iPhone Production Scale Trend (2021 is a forecast)
[Source: TrendForce]

TrendForce also mentioned that the recent semiconductor supply shortage could negatively impact Apple's supply chain but maintained an optimistic view on future growth. In particular, it is expected that Apple will benefit as Huawei, which is under U.S. government sanctions, falters in the flagship smartphone market.

The launch price of the iPhone 13, scheduled for release in the second half of the year, is expected to be similar to its predecessor. While the screen notch will be smaller, the design is reported to have little difference from the iPhone 12. TrendForce predicted, "Apple will prioritize optimizing existing features," and added, "Although prices of some key components have risen due to the semiconductor shortage, the retail price of the new iPhone will be similar to that of the iPhone 12 released last year."

The new iPhone is estimated to account for 39% of Apple's total annual production volume. The share of 5G models, including Apple's first 5G smartphone, the iPhone 12, is also expected to expand to 75% this year.

TrendForce also mentioned that Apple has stopped production of the 5.4-inch iPhone 12 mini model ahead of the new iPhone launch. This is interpreted as a measure due to poor sales. Earlier, JP Morgan also stated that Apple would halt production of the iPhone 12 mini during this quarter. However, Apple has not issued an official statement regarding this.