In an interesting development, Apple has decided to cut its production of the new iPhone SE, though the US$429 entry-level model was just launched weeks ago.
According to a report by Nikkei Asia, the brand has told suppliers to scale back production by 20%, or two to three million units, for the Q2 2022.
Furthermore, the technology giant also reduced orders for AirPods by approximately 10 million units for the whole of the year.
Despite its lower price point, it appears the iPhone SE isn’t as popular as Apple’s more expensive models. Counterpoint Research noted that the 2020 version of the iPhone SE only made up 12% of all iPhone sales till Q4 2021.
As per CNBC, it’s been posited that the decrease in demand could be caused by the ongoing Russia-Ukraine conflict, dampening consumers’ spending in the electronics sector.
Could Apple be seeing a slower year f0r its iPhones and AirPods? Or will a release of a newer model later this year drive sales back up? We’ll have to wait and see.