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.
Source: Nikkei Asia (via MacRumors)
Discussion (4 replies)
Join Discussion →Not too surprised, the iPhone 14 buzz is already strong. SE will probably pick up once that's released and everyone realizes they don't really need to drop $1,500 on their phone for it to do ... the exact same things their current phone does. But right now I think a lot of people that would otherwise have got an SE (or will eventually get one) are just waiting to see what the 14 brings - just in case it breaks the mold.
I really am at a loss for next generation new phone features... what are they going to do. Introduce a high bandwidth headphone jack for audiophiles with discreet amplifiers? Integrated smart glass interface with an iEye headband you wear to allow seemless AR integration. Wireless charging that works In a room without causing other interference... ummm.
Ok I got nothing else.
Considering how incrementally these companies like to roll things out it sounds like you may have just detailed the next 3 or 4 gens. ;)
Outside of Android, where you have a few products that break the mold - in Apple
World, the X was the last mold-breaking product.
Every single phone since is either an upgrade from the 8 or the X - just better processor, better battery life, minor improvement in the screen and better camera. Almost all of the significant advances have been directly due to the camera.