Apple Reportedly Asks Suppliers to Make Fewer Components for AirPods, MacBooks, and Apple Watch Due to Weak Demand

Apple has asked suppliers to make fewer components for the AirPods, MacBook, and Apple Watch families in the first quarter of this year due to low demand, according to a report from Nikkei Asia.

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From the report:

In a sign of the gloomy outlook for consumer electronics, Apple has notified several suppliers to build fewer components for AirPods, the Apple Watch and MacBooks for the first quarter, citing weakening demand, according to Nikkei Asia’s supply chain checks with several component suppliers.

In the fourth quarter of last year, Apple reported Mac revenue of $11.51 billion, an increase of nearly 26% year-over-year. Wearable revenue, which includes the Apple Watch, was $41 billion, while iPad revenue dropped by 13% year-over-year to $7.17 billion.

Talking to Nikkei Asia, one anonymous manager at an Apple supplier is quoted as saying "Apple has alerted us to lower orders for almost all product lines actually since the quarter ending December, partly because the demand is not that strong." Another executive at a supplier for both Apple and Samsung described the current situation as "very chaotic," citing ongoing disruptions and complications.

Apple has been facing challenging supply chain hurdles in the last few months, mainly impacting iPhone 14 Pro production. Apple's main iPhone plant in China has resumed production at near-peak capacity, a sign ‌iPhone‌ production has resumed normality.

Tag: Nikkei

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Top Rated Comments

Herrpod Avatar
19 months ago
I’m shocked that people are less interested in these low effort 2022 offerings. Shocked!
Score: 27 Votes (Like | Disagree)
Zakn Avatar
19 months ago
They should either innovate or reduce prices to increase sales.

It is difficult to convince people to buy an iPhone 14 Pro for 1329 euros to just have the « dynamic island ». And now they rumor that the evolution for the iPhone 15 Pro is USB C.

If Apple doesn’t find new ways to innovate, they will have a painful years ahead
Score: 26 Votes (Like | Disagree)
gusping Avatar
19 months ago

Even if those came out here, the prices outside of the USA would be greatly increased resulting in fewer sales . Even as a person who is very financially well off, I still did a double and triple take. It’s insane how much they’ve increased it by here in the UK.
Agreed. The prices have put me off Apple products entirely. I am actually debating whether or not I should go all in on my gaming pc. Mac OS is so bad now that it's not the attraction it was 10 years ago.
Score: 23 Votes (Like | Disagree)
jclardy Avatar
19 months ago
I think we have truly passed the “peak” of the yearly upgrade cycle. I have a 14 Pro and it is great, but hostly I would have still been happy with my 11 Pro which I still have around as a test device. iPad is truly in stasis mode, even though it has gotten huge software upgrades. The 2018 11” is still an incredibly viable device in 2022.

My family members which are must less techie are quite happy with iPhone 8/X era devices. My M2 MacBook Air smokes my past intel machines, and we aren’t going to get another M1 level quantum leap in performance/battery.

Airpods are great, but I upgrade when my old ones batteries are dead or the case breaks. Everything is finally “good enough” to not feel the urge to move on to something newer.
Score: 23 Votes (Like | Disagree)
oink_oink Avatar
19 months ago
Apple's outlook wouldn't be quite so gloomy if their products weren't so boring. Macs that can't do 4k @120FPS w/ 4:4:4 via HDMI? In 2023? Laughable. Screams DOA.
Score: 21 Votes (Like | Disagree)
diggy33 Avatar
19 months ago
Apple needs a laptop that starts below $800 for consumers.
Score: 21 Votes (Like | Disagree)