Nikkei Asia: Apple Cutting AirPods Production Due to Decrease in Sales

Nikkei Asia: Apple Cutting AirPods Production Due to Decrease in Sales

A new report from Nikkei Asia. claims Apple is cutting the production of its AirPods earbuds by around 25% to 30%, due to a drop in sales brought about by increased competition in the wireless earphones marketplace.

The report – which cites the ever-popular “sources familiar with Apple’s production plans” – says Apple now plans to produce only roughly 75 to 85 million units of AirPods for the rest of this year. Initial production goals were around 110 million units.

Apple now expects to make between 75 million and 85 million units for 2021, compared with a previous production forecast of 110 million units.

“The most significant order reduction is for the second quarter toward the start of the third quarter,” said one of the people familiar with the matter. “The levels of inventory [in warehouses] and in-store stocks of AirPods are currently high … and demand is not as strong as expected.”

The report doesn’t specify which AirPods models will see production cuts. Apple’s current lineup includes the second-generation standard AirPods with wireless charging,¬† the AirPods Pro, and its over-ear AirPods Max.

AirPods and AirPods Pro are expected to be upgraded this year, which Apple hopes will “stimulate sales,” according to the report. Apple analyst Ming-Chi Kuo says production of third-generation AirPods will begin in the third quarter of 2021. The new AirPods are said to have a design that resembles AirPods Pro, but lack “Pro” features, like Active Noise Cancelation.