apple Apple is limiting production of its new iPhone SE due to lower-than-expected demand, Nikkei Asia said on Monday. The company reportedly asked suppliers to reduce production of the iPhone SE, its new $ 429 budget 5G phone, by about 2 million units to 3 million units, or about 20% of initial orders, according to Nikkei Asia. Apple also reduced orders for AirPods by about 10 million units for the entire year 2022, according to the report. This reduction in production is a sign of the Ukrainian war and the negative effects of inflation on the demand for electronics, Nikkei said. The iPhone SE is not as popular as Apple’s more expensive iPhones. According to Counterpoint Research, the 2020 version of the iPhone SE accounted for 12% of all iPhone sales from its release until the 4th quarter of 2021. Several large technology companies, including Apple, have cut off sales to Russia following its invasion of Ukraine. The US, EU, Japan, South Korea and Taiwan have all imposed economic sanctions on Russia for the invasion, disrupting the supply chain and increasing the risk of inflation. Apple did not comment on the report. JPMorgan, meanwhile, said sales of the iPhone SE may be limited in China, where analysts said delivery times have been extended and in-store pickup is not available due to COVID lockdown. The iPhone SE was released on March 18. While marketed as a budget product, the price of the $ 429 iPhone is still a staggering increase from the $ 399 model released by Apple in 2020. Apple’s smartphone market share in China hit a record high in the fourth quarter of 2021, with the iPhone maker regaining first place in the country for the first time in six years. JPMorgan has warned of a risk of competition with local players in China and India who are in a better position and have more leverage in the market. Local tariffs could also hurt Apple’s ability to compete in these international markets, JPMorgan said. Read more from Nikkei Asia.
