Apple plans to cut production of its iPhone devices and AirPods as the Ukraine crisis and looming inflation begin to weigh on demand for consumer electronics, Japanese newspaper Nikkei reported on Monday, citing sources.
The company plans to produce about 20% fewer iPhone SEs in the next quarter, or decrease production orders by about 2 million to 3 million units than originally planned, due to weaker-than-expected demand, Nikkei said. .
The U.S. tech giant has also reduced orders for AirPods wireless headphones by more than 10 million units for the whole of 2022 as it draws back on inventories due to lukewarm demand, the newspaper said.
Earlier this month, Apple unveiled 5G connectivity for its iPhone SE, its low-cost model aimed primarily at buyers in emerging markets.
Counterpoint Research said the previous iPhone SE 4G accounted for 12% of total iPhone sales from its launch in Q2 2020 to the end of 2021, with Japan being the biggest market after the United States.
The company also asked suppliers to produce a few million less of the entire iPhone 13 lineup than previously planned, but said that adjustment was based on seasonal demand, according to the report.
Apple told CNN it would not comment on the information.
Source: CNN Brasil
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