AppleIt is reducing its production new budget iPhone SEDue to lower-than-expected demand Nikkei Asia reported Monday.

According to reports, the company asked its suppliers for a reduction in production of iPhone SE. new $429 budget 5G phoneAccording to Nikkei Asia, the order volume dropped by approximately 2 million to 3 million units or 20% from its initial order. According to Nikkei Asia, Apple reduced AirPods orders by approximately 10 million units over the whole of 2022.

Nikkei stated that this production decline is due to the Ukrainian war, and inflation’s adverse impact on electronic demand.

Apple’s iPhone SE isn’t as well-received as its more costly iPhones. Counterpoint Research estimates that the iPhone SE 2020 model accounted for 12.5% of iPhone sales, from its release to Q4 2021.

Many tech giants, including Apple stopped selling in Russia after the invasion of Ukraine. All major tech companies, including Apple, imposed sanctions economic on Russia in response to the invasion. The supply chain was disrupted and inflation risk increased.

Apple spokeswoman was not available immediately to discuss the reports.

JPMorgan has stated that iPhone SE sales are likely to be restricted in China. Analysts said the delivery times for China have increased and pick up is not possible due to COVID lockdowns.

On March 18, the iPhone SE was launched. Although the iPhone SE is marketed as a budget model, its $429 price tag still represents a significant increase from the $299 Apple introduced in 2020.

Apple’s share of China’s smartphone market was a staggering 80%. record highThe fourth quarter of 2021 saw the iPhone maker take back the #1 spot in the country, for the first time since six years.

JPMorgan warns of competition risks with Indian and Chinese local competitors that have greater market leverage and are more well-placed. JPMorgan stated that Apple could be affected by local tariffs in order to remain competitive on these global markets.

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