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Demand drops Apple apparently cuts iPhone SE production

30.03.2022, 19:48

According to the report, due to the war in Ukraine and the threat of inflation, Apple is forced to drastically reduce the production of the new iPhone SE, and several million fewer Airpods will roll off the assembly line. The contraction in the iPhone 13 is less obvious.

It wasn’t until early March that Apple launched the third generation of the iPhone SE, an industry information service.Digitimes“It is estimated that up to 30 million units should be sold this year. But the device probably won’t live up to high expectations.”Nike Asiawrites that Apple will have to cut production of the cheapest iPhone by 2-3 million units in the next quarter alone. The business journal cites four different informants.

iPhone 13 works better

According to Nikkei Asia, Apple’s measures are the first sign that the war in Ukraine and the threat of inflation are starting to dampen demand for consumer electronics in general. However, the current 13 models were significantly less affected than the SE. Apple is said to have cut production “by a few million units”, but this is supposedly just a seasonal demand adjustment.

The fact that the SE performs worse than the iPhone 13 could also be due to Apple being a bit overzealous when it comes to reusing old components. The device has a new 5G-enabled A15 chip, but otherwise, little has changed from its almost five-year-old iPhone 8 body and LCD predecessor.

Ten million fewer Airpods

Apple also made red pencils for Airpods. For the entire year, the company ordered 10 million fewer headphones, sources said. According to them, Apple expects weak demand and wants to reduce inventory.

Earlier this month, Apple stopped all sales in Russia due to the attack on Ukraine. However, in terms of sales, Apple ranked 2021. counterpoint according to third place with 13 percent, Samsung and Xiaomi had large market shares with 30 and 23 percent respectively.

Russians buy electronics

After the announcement, many Russians stocked up on Western consumer electronics. Reuters citing Russia’s Promsvyazbank, said spending on it in the first week of February was 40 percent higher than the February average.

Like Apple, other smartphone makers are likely to slow down their production. All of them are overstocked and need to be adjusted, a Counterpoint analyst told Nikkei Asia. Demand in China is rather weak, and the war in Ukraine is likely to affect the entire European market and demand there.