Apple is reportedly reducing the quantity of production of their new iPhone SE models, as the company is facing reduced demand for it. With the world facing the threat of high-inflation and the ongoing Russian-Ukraine invasion, Apple has informed suppliers to produce a low number of iPhone SE units, iPhone 13 units, and AirPods for 2022.
Both inflation and the Russia-Ukraine war has reduced customer demand for iPhones across Europe, as people are less likely spend money on consumer electronics, and more likely to save money for food and other supplies.
In response to Russia’s aggression towards Ukraine, Apple has also stopped the sales of their products in Russia, which would contribute to the lower overall demand for Apple products.
Compounded by the chip shortage, supply chains around the world for electronics have been severely affected and the Apple is certainly feeling these effects. To keep inventories in check, Apple has slowed down the production of the 5G-capable iPhone SE, and according to Ming-Chi Kuo, Apple is expected to ship 15-20 million units in 2022, which is lower than the previous estimate of 25-30 million.
Along with this, Apple is reportedly slowing down the production of the iPhone 13 series by a couple million units. This is mostly due to changes in seasonal demand. AirPods have also receiving a cut in production by about 10 million units for the year 2022.