Apple Said to Cut iPhone, AirPods Output Due to Weaker-Than-Expected Demand

Apple is planning to lower the output of its iPhone and AirPods gadgets because the Ukraine disaster and looming inflation begin to weigh on demand for client electronics, the Nikkei reported on Monday, citing sources.

The corporate plans to make about 20 % fewer iPhone SEs subsequent quarter, or decrease manufacturing orders by about 2 million to 3 million items than initially deliberate, due to weaker-than-expected demand, Nikkei mentioned.

The US tech big additionally lowered orders for its AirPods wi-fi headphones by greater than 10 million items for all of 2022, because it scales again the extent of inventories due to lukewarm demand, the newspaper mentioned.

Earlier this month, Apple unveiled 5G connectivity to its iPhone SE, its low-cost mannequin aimed largely at consumers in rising markets.

Counterpoint Research mentioned the sooner 4G iPhone SE accounted for 12 % of complete iPhone gross sales from its launch within the second quarter of 2020 till the top of 2021, with Japan being the largest market after the US.

The corporate additionally requested suppliers to make a few million fewer items of the complete iPhone 13 vary than beforehand deliberate, however mentioned this adjustment was primarily based on seasonal demand, in accordance to the report.

Apple didn’t instantly reply to a Reuters request for remark.

© Thomson Reuters 2022

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