Despite overtaking Samsung Electronics Co. Ltd. globally in smartphone sales in the fourth quarter, sales of Apple Inc.’s iPhones are not meeting sales expectations, prompting the company to cut production on weaker-than-expected demand, according to a new report.

Nikkei Asia claims that Apple is slashing the production of its iPhone 12 lineup by around 20%, with the majority of the cuts coming from the iPhone 12 mini. Apple is reportedly now targeting production of about 75 million units in the first six months of the year, whereas it previously told suppliers it needed components for more than 100 million iPhones out to June 30.

The figures, presuming they’re correct, are still up on Apple sales from 2020, a year that saw consumer spending hit hard in the first half of the year by the COVID-19 pandemic. That said, the apparent failure of the iPhone 12 mini is highly notable.

Nikkei said the “mildest estimate” for the production cut to the iPhone Mini 12 lineup is “more than 70%” for the six months through June. “This year is still not bad, but of course demand for the first half of 2021 is not as high as people were thinking at the end of last year,” a source told the publication.

The iPhone 12 mini was launched alongside the rest of the iPhone 12 lineup in October. Differing from the main iPhone lineup, the mini includes similar features as Apple’s flagship phones but in a smaller form factor, with a 5.4-inch Super Retina XDR display.

Whether the iPhone 12 mini has failed is open to contention. What is clear is that Apple grossly overestimated the demand for its entry-level phone. Apple has tried, at various times over the last few years, to offer a cheaper entry-level phone, but the average Apple user tends to be better off financially and can buy more expensive models.

With the mini coming in at 5.4 inches, Apple is also trying to sell a phone that bucks the trend of larger phones. The original iPhone may have been 3.5 inches, but the trend for nearly a decade has been for bigger phones with richer screens. Although not everyone likes that trend, market demand would suggest otherwise, the lackluster sales of the iPhone 12 mini being one example.

Image: Apple