Long-time Apple Inc (NASDAQ: AAPL) analyst Ming-Chi Kuo is not upbeat about the 2022 mobile market. 

What Happened: Kuo noted that the reduction in orders from a high-end manufacturer like Apple to a low-end Chinese manufacturer is a signal that the mobile phone industry is “facing structural challenges.”

See Also: What Would Apple’s iPhone 14 Lineup Look Like? Analyst Shares Expectations

Why It Matters: Recently, the Tim Cook-led company said it planned to cut production of its iPhone 12 mini for the first half of 2021 by more than 70% due to “lower than expected demand.”

The iPhone maker is cutting orders for all iPhones for the first half of 2022 by nearly 20% compared to its plans in December last year.

Apple is targeting production of nearly 75 million units, last year the tech giant had asked suppliers to secure components for up to 96 million units for the first six months of 2021.

Price Action: On Monday, Apple shares closed 2.7% lower at $150.62 in the regular session and rose 0.2% in the after-hours trading.