Apple to cut iPhone and AirPods release – Nikkei

March 28 (Reuters) – Apple Inc (AAPL.O) plans to cut production of its iPhone and AirPods devices as the Ukraine crisis and looming inflation begin to weigh on demand for consumer electronics, Apple reported on Monday. Nikkei, citing sources.

The company expects to manufacture around 20% fewer iPhone SEs in the next quarter, or cut production orders by around 2-3 million units from the original forecast, due to weaker demand than expected, Nikkei said.

The US tech giant also cut orders for its AirPods wireless headphones by more than 10 million units for all of 2022 as it cut inventory levels due to lukewarm demand, the report said. newspaper.

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

Counterpoint Research said the older iPhone SE 4G 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. Read more

The company also asked vendors to manufacture a few million fewer units for the entire iPhone 13 lineup than expected, but said that adjustment was based on seasonal demand, according to the report.

Apple did not immediately respond to a request for comment from Reuters.

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Reporting by Jahnavi Nidumolu in Bengaluru; Editing by Anil D’Silva

Our standards: The Thomson Reuters Trust Principles.

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