International Business: Apple to cut production of iPhone – Gulf Digital News

International Business: Apple to cut production of iPhone – Gulf Digital News

LONDON: Apple Inc is planning to lower iPhone and AirPod production due to a demand slowdown caused by the Ukraine crisis and rising inflation, the Nikkei newspaper reported yesterday, citing sources briefed on the matter.

The company plans to produce 20 per cent fewer iPhone SEs – or about 2 million to 3m units – next quarter than originally planned, the report said. It added that Apple has also reduced 2022 orders for AirPods by more than 10m units.

Apple, whose shares were down about 2pc in premarket trading, did not immediately respond to a Reuters request for comment.

The news of weaker demand mirrors forecasts from analysts who have warned that Covid-19 lockdowns in Chinese cities and a surge in inflation due to the Ukraine conflict could hurt smartphone demand this year.

Apple, in particular, faces challenges from the lack of a design upgrade for the latest SE and a $30 increase in its price from the 2020 model, analysts have said.

Ming-Chi Kuo at TF International Securities yesterday slashed his shipment estimate for iPhone SE this year to between 15m and 20m units, from 25m to 30m units previously.

“It looks very similar to the iPhone SE (2020), a second refurbishment of the