Apple is cutting back on iPhone SE and Airpod orders due to weaker-than-expected demand. It seems the iPhone SE is losing popularity, as Apple has told suppliers to reduce production for the 5G budget-oriented phone, which launched just weeks ago. Orders for the new phone have been cut by 2 million units (20%) during the current quarter.
An analyst has agreed with the weaker demand, mentioning how the iPhone SE is still in stock.
Shanghai lockdown doesn’t affect the iPhone SE production. However, the new iPhone SE demand is lower than expected (the delivery status “in stock” as one of the proofs), and I cut my shipment estimation in 2022 to 15-20M (vs. 25-30M previously).— 郭明錤 (Ming-Chi Kuo) (@mingchikuo) March 28, 2022
Apple’s AirPods are also being reduced by over 10 million units for the entire year. The popular wireless accessory has had a lukewarm reception in 2022.
Inventory orders for the iPhone 13 are also being reduced by a couple of million units. Apple says this is a normal adjustment for decreased demand during this time of year.
The war in Ukraine may be playing a significant role, with Apple being one of the companies that has cut sales in Russia. Apple is the third largest seller of smartphones in Russia. It sold roughly 5 million units in the country in 2021, according to IDC.
Europe has seen inflation steadily rising in 2022. “The war has affected spending at the European markets. … It is understandable [consumers will] save the money for food and for heating,” said an Apple executive.