Apple has reportedly cut production of the new iPhone SE (2022) over lower-than-expected demand.
It seems Apple has instructed multiple suppliers to lower production orders by about 2 to 3 million units for the quarter, at least according to Nikkei Asia.
Established Apple analyst Ming-Chi Kuo has offered a further insight into the predicted figures for Apple’s new affordable iPhone. Apparently, it’s projected that Apple will sell between 15 and 20 million SE units this year rather than the initial estimate of 25 to 30 million.
It’s not even the usual supply chain woes that have led to this cut, either. It seems the demand simply hasn’t been there.
While it might be tempting to speculate on consumer fatigue over Apple’s recycled iPhone 8 design – especially in combination with the accompanying price bump – the actual reasons are likely to be far more serious than that. Sources for Nikkei Asia point to the Ukraine war and looming inflation as key reasons for lower consumer electronics demand.
Other sources have pointed to the current COVID lockdown in China as a factor in lower demand for the iPhone SE (2022). China is where virtually all smartphones are made, of course, but it’s also a huge smartphone market in its own right.
Nikkei claims that these external events have also affected demand for AirPods earphones, with Apple lowering orders by more than 10 million units for the year.
Apple has also reduced its orders for the iPhone 13 range, but it’s claimed that this is a seasonal adjustment rather than a dramatic drop in demand.
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