Apple has reportedly reduced production orders for the recently launched iPhone SE and its AirPods wireless headphones, fearing that demand for its devices will drop due to broader economic challenges.
The Cupertino-based company launched the revamped version of its mid-range phone earlier this month, the first in the lineup to include 5G support. It's also the first iPhone made from carbon-neutral aluminum.
Apple had hoped the device would expand its reach and market share, building on the strong performance of the iPhone 13 lineup that launched in late 2021.
Application for iPhone SE
However, according to Nikkei, the company plans to make 20% fewer iPhone SE phones than expected, while the number of AirPods made will drop by XNUMX million throughout the year.
The presumed fear is that the economic impact of the Russian invasion of Ukraine could compound the market challenges created by the Covid-19 pandemic.
Global lockdowns have reduced consumer demand, closed outlets and created component shortages from which the mobile industry has yet to fully recover.
Now consumers are faced with rising food and energy prices and can forgo one-time purchases like a new smartphone and keep their current device. Others may opt for a cheaper alternative to Apple's iPhone lineup.
Apple has already stopped shipments of its products to Russia, where it is the third manufacturer with 16% of the market.
The company has been contacted for comment.
Via Nikkei