Even with stellar reviews, a better price point, and excellent results when going up against its own larger iPhone siblings, the iPhone 12 mini has lagged in sales to the point where Apple has cut back production.
However, with all that going against the mini line of iPhone, Apple appears to be still moving forward with developing an iPhone 13 mini. In a recent video, Jon Posser of FrontPage Tech, states that Apple may not launch an iPhone SE this year because it became a direct competitor to the Mini upon its release, and that may have caused lower than expected sales.
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The issue of having two smaller form factor iPhones when iPhone 12 mini became evident. With the iPhone SE being more affordable, it became the dominant option for entering the Apple ecosystem. Also, some early reports of battery life issues with the iPhone 12 Mini may have caused some consumers' reticence.
Apple's obvious solution will be to no longer offer the iPhone SE, which is also very popular. Consumers like the smaller phone due to ease of one-handed use. If all goes to plan, the upcoming iPhone Mini 13 will be the one option in this form factor and should drive up the Mini sales.