Because Of This, Apple Is Cutting Production Of The Latest IPhone SE!

JAKARTA - The conflict between Russia and Ukraine is still haunting the United States (US) technology companies. Now Apple has reportedly reduced production of the new iPhone SE due to weaker-than-expected demand.

The company has asked suppliers to cut production of the iPhone SE, which offers 5G networks by about 2 million units, to just 3 million units, or about 20 percent of the initial order. Apple is also reducing orders for AirPods by about 10 million units over the full year of 2022.

This drop-in production is a sign of the Ukraine war and the negative impact of inflation on electronics demand.

However, the iPhone SE is not as popular as Apple's more expensive iPhone. According to Counterpoint Research, the 2020 version of the iPhone SE only accounted for 12 percent of all iPhone sales since its launch until Q4 2021.

But if you launch Nikkei Asia from TechCrunch, Tuesday, March 29, Apple's latest earnings report found that the hardware giant's revenue exceeded expectations amid an ongoing chip shortage.

The Cupertino, US-based company marked a 9 percent growth in iPhone sales, while most other markets are contracting. Unfortunately, the new iPhone SE 5G arrives at a time of a global storm of trouble.

Earlier in the month, Apple also announced that it would stop selling in Russia, following the invasion of neighboring Ukraine.

“We will continue to evaluate the situation and communicate with the relevant government about the actions we are taking. We join everyone around the world calling for peace," Apple said.

A number of other companies have also taken similar action, including Apple's main competitor, Samsung. Global chip shortages continue to be a factor here, along with broader inflation concerns, impacting buying decisions.