Nikkei Asia "Apple to Cut iPhone SE Production by 20% in Q2"

Quarterly Reduction Target of 2 to 3 Million Units
Ukraine War and Inflation Pressure Increase

[Asia Economy Reporter Cha Min-young] Apple is reported to cut production of the new iPhone SE in the second quarter by 20% from the original plan. This is due to concerns that the Ukraine war and rising inflation pressures will lead to a slowdown in demand.

Nikkei Asia cited multiple sources on the 28th (local time), saying that Apple aims to reduce production orders by about 2 to 3 million units from suppliers of the iPhone SE during this quarter.

The mid-range model, iPhone SE, is the new 2022 model unveiled on the 8th of this month (local time). It is the first affordable iPhone supporting 5G communication and is equipped with the same A15 Bionic chip as the iPhone 13 Pro line.

Apple is also reportedly planning to reduce orders for its earphones, AirPods, by more than 10 million units for the year 2022. According to global market research firm Counterpoint Research, 76.8 million AirPods were shipped last year.

Nikkei Asia viewed Apple's move as indicating increased pressure on the technology industry following the outbreak of the Russia-Ukraine war. It also added analysis that Apple's production cut trend could trigger a chain reaction in the IT industry.

Meanwhile, there is also analysis that smartphone inventories worldwide are abnormally high, making adjustments inevitable. Brandy Wang, a tech analyst at Counterpoint Research, said, "It is clear that smartphone demand in China is quite weak," adding, "The Russia-Ukraine war will have ripple effects on the European market and consumer demand."

This content was produced with the assistance of AI translation services.