On Wednesday, it was reported that Apple cut its iPhone production by 20 percent.

The report was from Nikkei Asia. The production cuts were a result of decreased demand for the iPhone 12 mini. However, it is important to note that the demand for iPhones is still high. Apple has plans to produce 230 million iPhones in 2021, an increase of 11.6 percent year-over-year, according to Nikkei Asia.

The issue lies with the iPhone 12 mini which doesn't seem to be appealing to consumers. Consumers have chosen the iPhone 11, iPhone 12, or other models of the iPhone 12 that have larger screens and more capabilities.

The iPhone 12 mini was created to aid individuals with smaller hands. The smaller model does require sacrifices such as battery life and screen size, but only costs $100 less than the iPhone 12.

Apple did extremely well last quarter, recording around $100 billion for the first time in company history. Much of this revenue came from its iPhone sales.

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Economics, Finance and Investing