Suppliers for the third-generation iPhone SE and AirPods in Apple’s supply chain say that they have not received any instruction from the tech giant to cut production, despite numerous reports claiming they have due to weak demand for both products.
iPhone SE and AirPods parts suppliers have not received any instruction to cut orders from Apple
Multiple analysts have recently reported that Apple’s new iPhone SE is experiencing weak demand from consumers due to its lack of design changes, the ongoing global pandemic along with the Ukraine crisis. In a tweet, TF Securities analyst Ming-Chi Kuo cut his shipment estimation in 2022 from 25-30M to 15-20M units.
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).
In addition, Nikkei Asia also reported that Apple will make about 20% fewer iPhone SEs next quarter than originally planned.
Apple plans to make about 20% fewer iPhone SEs next quarter than originally planned, in one of the first signs that the Ukraine war and looming inflation have started to dent consumer electronics demand, sources briefed on the matter told Nikkei Asia.
Kuo also said that demand for the third-generation AirPods was “significantly lower” than for the previous model, saying the tech giant cut production orders by 30%. The demand for AirPods 3 is reportedly lower than its predecessor because consumers do not think there are enough new features in the earbuds to warrant spending an extra $50 on them.
According to a new report from Digitimes, Apple may not be cutting back on production. Taiwan-based component manufacturers have told the publication that they have not cut production with anonymous sources saying they have not received any instructions from the tech giant about doing so.
It is possible that analysts got wind of Apple’s plans before suppliers were told about them. It is also possible that the reported cuts were movements of orders to another manufacturer keeping in mind Apple’s complex supply chain. However, if that was the case, some of the publication’s sources would have revealed instructions to reduce.