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Apple said to be cutting iPhone SE production 20% over Ukraine, inflation concerns – TechCrunch

Apple’s latest earnings report revealed the hardware giant exceed expectations amid the ongoing chip shortage. Overall, the company saw 9% growth in iPhone sales while most of the rest of the market shrank. When it comes to supply chain governance, there’s a lot to be said for the leverage that comes with being one of the biggest players.

But not even a giant like Apple is immune to the impact of global affairs. In the early days of the pandemic, the company declined to forecast due to uncertainties. Probably the right move considering how things have been going in the world over the past two years. And now the latest iPhone SE comes in kind of a perfect storm of global troubles.

Citing interviews with sources close to the matter, Nikkei Asia reports that Apple cuts the production of the budget phone by 20%. Observers were no doubt expecting some reduction, thanks to the double win of the Ukraine invasion and inflation, but the size of the number comes as a surprise for an all-new handset – and the first addition to the series since 2020. The drop amounts to around 2- 3 million cell phones for the quarter.

Apple announced this earlier this month Sales stop in Russia, after the invasion of neighboring Ukraine. “We will continue to assess the situation and are in contact with the relevant governments about the measures we are taking,” the company stated at the time. “We join with all those around the world who are calling for peace.”

A number of other major consumer hardware companies have taken similar action, including Apple’s main competitor Samsung. Both brands regularly rank among the top five smartphone market shares in the country.

Global chip shortages continue to play a role here, along with broader inflation issues that have impacted buying decisions. These types of financial concerns always play a role in the sales of products like smartphones, which are sometimes classified as non-essential purchases. At the very least, it leaves users stuck on older devices a little longer than they would otherwise.

In addition to the SE impact, the publication notes that AirPods orders for all of 2022 have also increased dramatically by around 10 million. A drop in iPhone 13 production is reportedly largely the result of seasonal fluctuations in demand.

TechCrunch reached out to Apple for comment.

Apple said to be cutting iPhone SE production 20% over Ukraine, inflation concerns – TechCrunch Source link Apple said to be cutting iPhone SE production 20% over Ukraine, inflation concerns – TechCrunch

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