Apple reportedly cuts iPhone SE production by 20%
Apple revealed the new iPhone SE this month and has already gone on sale. It seems that Apple isn’t expecting the device to perform as well as they had hoped.
According to a new rumor out of Asia, Apple is telling multiple suppliers that it aims to cut production orders by 2 to 3 million units for the second quarter of this year (the one starting in April and ending in June). That apparently means it wants to make about 20% fewer iPhone SE (2022) units than it initially planned.
“Sources briefed on the matter” told Nikkei Asia that the blame for this move goes to the looming global inflation as well as the war in Ukraine, both of which “have started to dent consumer electronics demand”.
Apple also reportedly cut orders for AirPods by more than 10 million units for all of 2022, as it apparently predicts “lukewarm demand” for the earphones and wants to reduce inventories. Last year, Apple shipped 76. 8 million units of AirPods, according to Counterpoint Research data. The new production cuts could lead to a decrease in overall 2022 shipments.
Apple is also said to have asked suppliers to make 2 million fewer iPhone 13 handsets (across the entire range) than previously planned, but this adjustment was explained by seasonal demand fluctuations and nothing else.