Apple is preparing for its longest winning streak this year after a report that the iPhone maker is cutting production of its inexpensive smartphone by a fifth amid falling consumer electronics demand.
After 9 consecutive sessions of gains, the stock fell by 2%, in pre-market trading in New York, bringing the stock back away from erasing its full losses over the last 12 months.
This comes as Apple plans to reduce production iPhone SE phones By about 20% in the next quarter compared to its original plan due to indications that demand for consumer electronics has been affected by the war in Ukraine and high inflation, according to Bloomberg, citing sources, and seen by Al Arabiya.net.
Apple told several suppliers that it cut production orders by 2 million to 3 million units during the quarter, the sources said.
This comes, as Apple this month updated its iPhone SE production line for the first time since 2020 and added support for the fifth generation network, perhaps in an attempt to persuade consumers who have old iPhones, to upgrade and attract new users from the competing Android system.
Not only that, the company also reduced orders for its AirPods by more than 10 million units for 2022, according to a Nikkei report.
Since its launch in 2016, AirPoss have become the world’s best-selling wireless headphones, helping Apple capture more than 25 percent of the global market share, according to research firm Counterpoint.
Some Apple suppliers also fell, with Qorvo dropping 2.4% in the primary market and Varta AG dropping 3.4% in Frankfurt after the Nikkei report.