Apple plans to reduce the production of iPhones and AirPods… What is the reason?

Citing sources, Nikkei reported that Apple plans to cut production of its iPhone and AirPods as the Ukraine crisis and looming inflation begin to affect consumer electronics demand.

The Nikkei magazine report said that the company plans to make iPhone SE devices 20% less in the next quarter, or reduce production orders by about 2 to 3 million units than originally planned, due to weaker demand than expected.

The newspaper said the American tech giant also cut orders for its wireless AirPods by more than 10 million units for the whole of 2022, as it cut back the level of stocks due to lukewarm demand.

And earlier this month, Apple unveiled 5G connectivity to its iPhone SE, its low-cost model mostly aimed at buyers in emerging markets.

Counterpoint Research said the older 4G iPhone SE accounted for 12% of total iPhone sales from its launch in the second quarter of 2020 through the end of 2021, with Japan being the largest market after the United States.

The company also asked suppliers to produce a few million units less than the entire iPhone 13 range than previously planned, but said this adjustment depends on seasonal demand, according to the report.

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