Leading tech giant focusing on consumer electronics, online services and software Apple Inc. (AAPL) is looking forward to cut down the production of iPhone and AirPods devices as the ongoing inflationary pressures are starting to affect the demand of consumer electronics.
This was first reported on the Nikkei on March 28, according to Nikkei, Apple is planning to scale down production of iPhone SE by 20% in the next quarter or cut down production orders by about 2 million to 3 million units than the initially planned due to weaker than expected demand.
Additionally, Apple is also experiencing decreased orders for its AirPods wireless headphones by over 10 million units for all of 2022. The company will be taking this move as it cuts down the level of inventories due to uncertain demand.
In the beginning of the month, Apple launched 5G connectivity to its iPhone SE, a low cost model aimed at mostly buyers in developing economies.
Nikkei says Apple has since asked its suppliers to make a fewer million units of the iPhone 13 range than the initial planned claiming this adjustment is based on seasonal demand.