Apple to Cut Production of iPhones and AirPods due to Waning Demand and Rising Inflation
Apple will reportedly be cutting its production of iPhones and AirPods next quarter. The company’s decision is reactionary to lowered demand due to the ongoing situation in Ukraine as well as rising inflation.
Sources privy to the situation, have reportedly told Reuters that Apple plans to cut production of the iPhone as well as its wireless AirPods earbuds. It’s said that during the next quarter, production of the iPhone SE will be lowered by roughly 20-percent. This will result in about two to three million units fewer produced. Likewise, Apple will also be cutting its orders of AirPods by more than 10 million units.
It’s been said that the crisis in Ukraine has played a dramatic role in the rise of inflation. On top of that, the rise in COVID-19 cases and subsequent lockdowns within Chinese cities have put pressure on Apple. Analysts predict that these may play a role in the greater demand for smartphones throughout the year.
In addition, analysts believe that the lowered demand, when looking at the iPhone SE, might be due to a lack of design upgrades and a rise in cost. The iPhone SE 3, which debuted only weeks ago, saw a price increase over its 2020 counterpart.
Apple’s stock fell two percent as of this morning. Apple has yet to comment on the matter.