A production cut of around 20 percent is planned by Apple for the third generation iPhone SE 2022 during the second quarter of 2022. The reasons would be the uncertainty due to the war between Russia and Ukraine, as well as the lower demand due to inflation.
Asian Nikkei revealed that the US manufacturer “intends to reduce production orders by around two million to three million units” for the period between April and June 2022, according to requests already made to “multiple suppliers”.
Four sources who requested confidentiality of their identity argued that the main cause of the decision is the “weaker demand than expected.” Another motivation would be the global increase in the cost of living observed since the start of the pandemic, which was accentuated by the hostilities in Eastern Europe.
“The war has affected spending in European markets… It is understandable that [los consumidores] save your money for food and heating”, analyzed with the same medium an executive of an Apple supplier, who was also not individualized.
Apple’s fears are not limited to the eventual market performance of the third generation iPhone SE 2022. The Cupertino giant also reduced orders for its AirPods headphones by more than 10 million units this year and the same fate would befall products such as AirPods, of which they manufactured 76.8 million last season.
The smartphone market has seen “exceedingly high” inventory levels, so it should be heading for a correction, said Brady Wang, technology analyst at Counterpoint Research.
“Final demand for smartphones in China is quite weak. … In addition, the war between Russia and Ukraine will probably have indirect effects on the entire European market and on consumer demand”, admitted the expert.