Apple to cut iPhone, AirPods output

Apple Inc. is planning to cut production of its iPhone and AirPods devices as the Ukraine crisis and rising inflation begin to weigh on demand for consumer electronics, Nikkei reported on Monday, citing sources.

Nikkei said the company plans to make about 20% fewer iPhone SEs in the next quarter, or about 2 million to 3 million units fewer production orders than originally planned, due to weak demand. , Nikkei said.

The US tech giant reduced orders for its AirPods wireless headphones by more than 10 million units for all of 2022, the newspaper said, as it scales back inventory levels due to weak demand.

Earlier this month, Apple unveiled 5G connectivity for its iPhone SE, its low-cost model aimed mostly at buyers in emerging markets.

Counterpoint Research said the earlier 4G iPhone SE accounted for 12% of total iPhone sales from its launch in the second quarter of 2020 to the end of 2021, with Japan being the largest market after the United States.

As per the report, the company asked suppliers to make a few million fewer units of the entire iPhone 13 range, but said the adjustment was based on seasonal demand.

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Apple did not immediately respond to a Reuters request for comment.

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