When Apple Inc. (NASDAQ: AAPL) first announced the comparatively lower-priced Apple iPhone 12 Mini, people around the world went crazy. Why not; the aspiration of owning an iPhone is still an all-time home and by making it more affordable Apple has made it under the reach of many people.
However, the joy to own an iPhone could be short-lived, especially for those who prefer to buy iPhone 12 Mini.
According to William Yang, an analyst at JP Morgan, Apple is considering to discontinue iPhone 12 Mini completely.
The decision to stop iPhone 12 Mini is driven by the fact that Apple misjudged the potential of smaller screen iPhone 12 Mini. Customers are finding more value in buying iPhone 12, iPhone 12 Pro and iPhone 12 Pro Max. This has a direct impact on the sales of iPhone 12 Mini, which has been below-than expectations.
After all the initial pre-launch hype and excitement, iPhone 12 Mini was available to grab from October 18, last year. It was seen as a great threat to Android dominance in developing countries. The lacklustre sales of iPhone 12, however, were insightful enough for Apple to pick the trend.
Apple iPhone Mini accounted for just 6% of the total iPhone sales in the October-November period – much below than the expectations of the market and Cupertino giant. Unlike iPhone 11 – the lowest priced model of iPhone 11 series – which gained a lion’s share of total iPhone sales during the same period when it was launched last year, iPhone 12 Mini failed to excite people when it hit the shelves. iPhone 12 and iPhone 12 Pro Max emerged as the best performing models according to the latest report by Consumer Intelligence Research Partners (CIRP).
The company was quick to read the sentiments of users and started cutting down the production of iPhone 12 Mini from the very beginning of this year.
The message for Apple was loud and clear – get rid of iPhone 12 Mini.
Don’t Buy iPhone 12 Mini
Apple is known for its aggressive and quick response to market trends. Within a quarter Apple slashed the production of iPhone 12 Mini and now analysts have a view that the company could stop the production of iPhone 12 Mini by the mid of this year.
The decision will have a direct impact on the price of iPhone 12 Mini.
Apple will try to get rid of all iPhone 12 Mini stocks as soon as possible before the successor of iPhone 12 is out in the market. In a bid to do so, there is every possible chance that the price of iPhone 12 Mini could be slashed. Retailers would be advised to squeeze their margins to beef up the sales of iPhone 12 Mini and may offer various discounts on iPhone 12 Mini model that may go end of life soon.
Such market shifts will have an impact on trade-in price and resale price of iPhone 12 Mini too. Amid the news of Apple discontinuing iPhone 12 Mini, the demand of iPhone 12 Mini would go down subsequently. As the retail price of iPhone 12 Mini would start to fall, the resale value of iPhone 12 Mini is bound to drop.
Reports indicate that the trade-in price of a new iPhone depreciates by 16.70% with a year. After Apple decides to announce the decision to discontinue iPhone 12 Mini, the depreciation would go higher at a much faster rate.
Unsuspecting buyers of iPhone 12 Mini may have a very small window of visibility to reasons behind such change in the price of iPhone 12 Mini and may fall for it. The decision to invest $699 in any smartphone that is bound to go end of life in the next few months, can’t be justified.
Unless Apple decides to tag iPhone 12 Mini with jaw-dropping offers, the decision to buy iPhone 12 Mini is injudicious.