Apple Looks To Slash iPhone, AirPods Production: Nikkei Asia

Apple Inc AAPL is looking to slash iPhone SE production by 20% next quarter than initial guidance, Nikkei Asia reports. Apple's move reflected the Ukraine war and looming inflation that have hindered consumer electronics demand.

The war has affected spending in the European markets, admitted an executive as the consumers would save money for food and heating.

Apple slashed the production orders for iPhone SE by 2 million - 3 million units for the quarter, citing weaker-than-expected demand. It cut the orders for its AirPods earphones by more than 10 million units for 2022 to counter lukewarm demand and reduce the inventory level.

Also Read: Apple iPhones Led Smartphone Sales As 5G Handsets Formed Over 50% Of Sales

Apple also looked to manufacture a couple of million fewer units of the entire iPhone 13 range than previous guidance due to the seasonality.

Apple's move could spark chain effects on other consumer electronics makers to trim production orders. Apple, the No. 3 smartphone maker in Russia, halted production sales in Russia after its Ukraine invasion.

Counterpoint Research disclosed the smartphone market's unreasonably high inventory levels would eventually undergo a correction. The Russia-Ukraine war would likely have spillover effects on the whole European market and consumer demand amid weak end demand for smartphones in China.

Price Action: AAPL shares traded lower by 1.39% at $172.30 in the premarket on the last check Monday.

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