Apple is looking at cutting production of its iPhone SE and AirPods, according to reports out of Asia. Plans are to trim back the number of SE handsets produced by 20%, say multiple sources that spoke to Nikkei Asia.
This is a bit of a blow for the newly-announced handset, which has only just turned up in South Africa. But, given the current situation overseas, it’s not exactly unexpected.
No iPhone SE for Russia
The most obvious reason for the cutback is that Apple has suspended sales in Russia. All of its sales. And since the company is the third-most-popular smartphone brand in that country, that’s a lot of smartphones not being sold. As such, it makes sense for Apple to not produce those handsets in the first place. Some two to three million iPhone SE units won’t be made over the immediate few months, according to Nikkei’s insiders.
We can also expect Apple to post less-than-thrilling figures in general, a trend that’ll probably spread to the rest of the tech world. One of the company’s Asian suppliers explained, “The war has affected spending at the European markets. … It is understandable [consumers will] save the money for food and for heating.” Because there’s no point in a smartphone if you’re struggling to feed your family, after all.
Aside from the iPhone SE, Apple’s AirPods are also in for a damper time. This doesn’t seem directly related to the Russian-Ukraine situation, however. There’s just reduced demand for the company’s in-ear buds, and the company doesn’t want loads of unsold inventory sitting on shelves.
Source: Nikkei Asia
