Apple is reportedly cutting production for its new third-generation iPhone SE just weeks after its launch. The production cuts are said to be due to uncertainty caused by current global conflict and alleged low demand, says a report from Nikkei Asia citing unnamed sources.
The Nikkei Asia report says Apple, citing “weaker-than-expected demand,” has told suppliers to cut back on production of the iPhone SE for this quarter by as much as two to three million units.
Apple is also cutting the production of the iPhone 13 series, but sources familiar with the matter say this cutback is due to seasonal demand change. The report also claims that Apple is also cutting the production of AirPods but does not specify which model or models.
A tweet earlier today by well-connected Apple industry analyst Ming-Chi Kuo jibes somewhat with the Nikkei Asia report, as he says he is cutting estimates on shipments of the new iPhone SE from 25 to 30 million to around 15 to 20 million units for 2022, due to low demand.
Shanghai lockdown doesn't affect the iPhone SE production. However, the new iPhone SE demand is lower than expected (the delivery status "in stock" as one of the proofs), and I cut my shipment estimation in 2022 to 15-20M (vs. 25-30M previously).
— 郭明錤 (Ming-Chi Kuo) (@mingchikuo) March 28, 2022
The new, third-generation iPhone SE starts at $429, up from $399 on the 2020 model it replaces. The new handset is powered by the same A15 Bionic chip as the one used in the iPhone 13, 5G connectivity, and up to 256GB of storage.
The third-generation iPhone SE also boasts a higher-performance 12MP Wide camera system, offering a range of improvements and photography features including Deep Fusion, Photographic Styles, Portrait Mode, and Smart HDR 4.