Tech giant Apple Inc. has slashed its iPhone SE production for the next quarter by 20% due to the impact of the Russia-Ukraine war on demand, Nikkei Asia reported.
- Apple told suppliers that it is looking at reducing iPhone SE production orders by some 2 million to 3 million in the third quarter due to weaker-than-expected demand, sources close to the matter disclosed.
- Apple also cut down orders for its AirPods earphones by over 10 million units this year, in anticipation of lukewarm demand, and in a bid to reduce its inventories after delivering 76.8 million units last year.
- The development comes amid the ongoing invasion of Russia in Ukraine, exacerbating the global chip shortage. Apple earlier stopped production sales in Russia after the tensions started.
The company has also told suppliers to cut down the iPhone 13 range by a couple of million units than earlier planned, but this would be dependent on seasonal demand. AAPL is down 1.50% premarket.