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It’s not even been a month, when Apple had launched its entry level 5G smartphone iPhone SE 3 but a recent report indicates that the company isn’t expecting it to perform as per expectations. Apple had updated its iPhone SE lineup for the first time since 2020 which was a 4G iPhone, while the new iPhone SE added 5G network support as well as the flagship A15 Bionic chipset. But now, according to reports, Apple is set to axe the production orders of iPhone SE 2022 by 20 percent for the second quarter of this year, which lasts till June starting with April. This apparently means Apple will make around 2 to 3 million less iPhone SE 3 units in comparison to the initially planned number.
The reason behind Apple’s plans to reduce the output of iPhone SE by around 20 percent from its original plan takes the issue towards the ongoing war in Ukraine. According to the Nikkei Asia report, several sources briefed on the iPhone SE 3 production cut which blames the looming global inflation as well as the consumer-electronics demand that has been hurt by the war in Ukraine. After nine straight sessions of gains, the stock for the company also fell as much as 1.6 percent on Monday. This will ultimately end the order of 2 to 3 million iPhone SE 3 units for the second quarter.
Not just iPhone SE 3, but several other Apple products are going to see the production cut in the coming months. According to the Nikkei report, Apple also cut the orders for its AirPod earphones by more than 10 million units this year. Apple AirPods were launched back in 2016, and since then they have become the most widely sold truly wireless earphones. AirPods sales helped Apple to grab more than 25 percent of the global market share, the Counterpoint firm report mentioned.
On top of these, Apple is also expecting to halt the production of all the models of the iPhone 13 series by 2 million less than previously planned, the Asia Nikkei report mentioned. Though, the reason behind iPhone 13 production cut is explained by seasonal demand fluctuations.
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