Apple is planning to cut production of the third-generation iPhone SE by 20% next quarter due to lower than expected demand.
As MacRumors reports, according to a report from Nikkei Asia, the combination of looming high inflation coupled with the ongoing war in Ukraine has dented demand for consumer electronics. The knock-on effect is, not as many people are buying Apple’s budget iPhone. Production of AirPods is also expected to be cut, but the report doesn’t state which model(s) and by how much.
It’s a view backed up by well-known Apple analyst Ming-Chi Kuo, who today revised his shipment estimates for the iPhone SE. Originally he expected Apple to ship between 25-30 million during 2022. However, he now believes 15-20 million will be produced. Kuo said it was due to “lower than expected” demand.
A quick check of the Apple online store reveals the 64GB, 128GB, and 256GB models of the iPhone SE are all available to purchase in all colors (Midnight, Starlight, (Product)Red) for collection today or delivery tomorrow. Clearly Apple has quite a lot of stock ready to sell, which suggests the claims of low demand are correct.
The question now is if the lower than expected sales really is due to consumers bracing for high inflation and rising costs? The alternative is that consumers aren’t all that bothered about a small iPhone, that while impressive, still costs over $400 and looks a little outdated.
