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Apple Slashes iPhone SE, AirPods Production

Apple will produce a million fewer iPhone SEs in the coming quarter than scheduled, due to the impact the Ukraine war is having on consumer demand and the overall supply chain.

Nikkei Asia reports that Apple has informed multiple suppliers to lower next quarter production orders by two million, to three million units.

Brady Wang, a tech analyst with Counterpoint Research, expects a market correction across the entire smartphones sector.

“We see the end demand for smartphones in China is quite weak,” Wang said.

“In addition, the Russia-Ukraine war will likely have spillover effects to the whole European market and on consumer demand.

“Counterpoint has revised down its view for the smartphone market for 2022 to some 5 per cent of growth, saying the ongoing Ukraine war could bring uncertainties.”

In addition, the company has reduced its overall AirPods orders by more than ten million units for the calendar year, citing weaker-than-expected demand.

Apple shipped 76.8 million pairs of AirPods in 2021, however the company expects a steep decline for 2022.

 



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