Apple is reportedly cutting production for the new third-generation iPhone SE just weeks after launch due to uncertainty caused by current global conflict and alleged low demand, according to a report from Nikkei Asia citing unnamed sources.
According to the report, Apple has informed suppliers to cut back on production of the iPhone SE for this quarter by as much as two to three million units, citing "weaker-than-expected demand."
Unlike the cut in iPhone SE production caused partly by low demand, Apple is also cutting down on the production of the iPhone 13 series, but sources familiar with the matter told Nikkei Asia this cutback is due to seasonal demand change. Per the report, Apple is also cutting the production of AirPods but fails to specify which model or models.
Coinciding with the report, reliable Apple analyst Ming-Chi Kuo said today in a tweet that he is cutting estimates on shipments of the new iPhone SE from 25 to 30 million to around 15 to 20 million units for 2022. Kuo said the lower shipments were a result of low demand.
Shanghai lockdown doesn't affect the iPhone SE production. However, the new iPhone SE demand is lower than expected (the delivery status "in stock" as one of the proofs), and I cut my shipment estimation in 2022 to 15-20M (vs. 25-30M previously). — éƒæ˜ŽéŒ¤ (Ming-Chi Kuo) (@mingchikuo) March 28, 2022
Apple released the new iPhone SE earlier this month with the same 4.7-inch form factor as the previous model but with the addition of 5G. The new iPhone SE is the only iPhone in the lineup that still features a physical Home Button and Touch ID but now benefits from the faster and more energy-efficient A15 Bionic chip. The iPhone SE starts at $429 with 64GB of storage.
See our roundup to learn everything you need to about Apple's latest iPhone.
Update: Two Apple suppliers responsible for AirPods have refuted Nikkei Asia's report that production has been cut, according to posts shared on Twitter by analyst Ming-Chu Kuo.
