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The company plans to produce 20% fewer iPhone SEs - or about 2
million to 3 million units - next quarter than originally
planned, the report said. It added that Apple has also reduced
2022 orders for AirPods by more than 10 million units.
Apple, whose shares were down about 2% in premarket trading, did
not immediately respond to a Reuters request for comment.
The news of weaker demand mirrors forecasts from analysts who
have warned that COVID-19 lockdowns in Chinese cities and a
surge in inflation due to the Ukraine conflict could hurt
smartphone demand this year.
Apple, in particular, faces challenges from the lack of a design
upgrade for the latest SE and a $30 increase in its price from
the 2020 model, analysts have said.
Ming-Chi Kuo at TF International Securities on Monday slashed
his shipment estimate for iPhone SE this year to between 15
million and 20 million units, from 25 million to 30 million
units previously.
"It looks very similar to the iPhone SE (2020), a second
refurbishment of the iPhone 8, and it is even less likely to
arouse consumer demand," Taiwan-based Isaiah Research analyst
Eddie Han said, cutting his forecast sales for the model by 5
million units.
Apple is expected to launch a brand new iPhone lineup later this
year, but analysts say it was too early to forecast any impact
on the upcoming range.
(Reporting by Jahnavi Nidumolu and Nivedita Balu in Bengaluru;
Editing by Anil D'Silva and Aditya Soni)
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