According to two reliable sources, Apple is slashing orders for the new third-generation iPhone SE due to weaker than expected demand.
On March 8th, Apple held its first major hardware reveal event of the year. During the event, the third-generation iPhone SE made its debut, complete with an updated processor and 5G support. But those upgrades might not be as tempting as Apple expected. According to two reliable sources, Apple plans to slash production orders for the new iPhone SE due to weak demand for the budget device and the ongoing war in Ukraine. Nikkei Asia reported on Monday that Apple will make 20% fewer iPhone SE units next quarter than originally planned. Four people told the publication that Apple is telling suppliers that it will decrease its orders by two to three million units. Apple also reportedly reduced its orders for AirPods by more than 10 million units for the rest of 2022. Nikkei Asia also offered a detailed explanation for the cuts to production in 2022: These moves by the world’s most powerful chip and component procurer underline the mounting pressure on the tech industry following the onset of the Russia-Ukraine war, which has compounded the yearslong chip shortage that has hit a string of industries from smartphones to PCs to automobiles.
