Apple has cut production of the new iPhone SE by 20%, according to a new Nikkei Asia report. The iPhone SE is a device for customers who don’t want to spend a lot of money or who prefer a smaller 4.7-inch screen. But if energy, food, and fuel prices are too high, as some have expected, these customers may see the iPhone SE as too much of a luxury when they buy their next phone.
The company has reportedly asked its suppliers to reduce their new iPhone SE production by around 2 or 3 million this quarter. In addition, AirPods orders will be reduced by at least 10 million throughout the year. Apple, which has currently suspended its sales in Russia, thinks that production should be reduced due to inflation concerns as well as the war in Ukraine.
The economic implications of Apple’s decisions can be quite complex. Although the company’s sales will fall below expectations, costs are also reduced by reducing production at the same time. Still, Apple’s major supply chain partners may not be prepared for this sudden decision and may have already produced too many devices.
Smartphone sales rose 6% last year after falling 12.5% in 2020, Gartner said. Apple’s latest decision may be a result of this data and the company may think that there will be no high demand for iPhone SE this year…
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