Apple to Make 20% Fewer iPhone SEs on Impacts of Ukraine War, Inflation

Apple to Make 20% Fewer iPhone SEs on Impacts of Ukraine War, Inflation

(NIKKEI Asia) Apple is reportedly planning to cut its production of iPhone SEs by 20% next quarter as consumer electronics demand falls.

The iPhone giant has also reduced orders for its AirPods earphones by at least 10 million units for this year, as the company sees lukewarm demand.

Apple has also requested its suppliers to produce a couple of million fewer units of its entire iPhone 13 range, citing the adjustment as a response to seasonal demand.

The conservative move by Apple occurs even as it halted its output sales in Russia following the invasion of Ukraine. The war is also said to have affected consumer spending across Europe.

The move by Apple is now expected to impact other consumer electronics makers who are likely to trim their output orders amid the uncertain environment.  

Apple launched the iPhone SE, a 5G-enabled budget phone, less than three weeks ago. The expected output cut will lower the number of units in the market by 2 million to 3 million.

AAPL: NASDAQ is down -1.88%

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