Apple Cutting Back on iPhone SE and AirPod Production Due to Weaker Demand

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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.

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.

Source: Nikkei Asia (via MacRumors)

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Peter Brosdahl
As a child of the 70’s I was part of the many who became enthralled by the video arcade invasion of the 1980’s. Saving money from various odd jobs I purchased my first computer from a friend of my dad, a used Atari 400, around 1982. Eventually it would end up being a lifelong passion of upgrading and modifying equipment that, of course, led into a career in IT support.

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