Apple is Reducing the Production of iPhones. Next Quarter Will Manufacture 2 to 3 million Less Units Than Originally Planned

Apple plans to reduce the production of iPhones and AirPods due to decreased demand caused by the crisis in Ukraine and inflation. The Japanese business newspaper Nikkei reported this on Monday. The technology giant plans to produce 20% less smartphones or about 2 to 3 million less units than originally planned for next quarter. AirPods' production is planned to be reduced by more than 10 million units.

 Analysts have foreseen the decline in interest in smartphones, warning, that the impact of Covid-19 on Chinese cities and a sharp inflation caused by the conflict in Ukraine could lower the demand for smartphones this year.

According to them, decreased demand should mainly affect the Apple brand, which is facing difficulties due to insufficient improvements in the design of their latest iPhone SE and an increase in its price by $ 30 compared to the 2020 model.

On Monday, TF International Securities lowered its estimate of SE iPhone sales this year to 15 to 20 million units from the previously expected number of 25 to 30 million units. According to experts, Apple will launch a completely new line of iPhones at the end of 2022, but they do not yet dare to predict any development of these sales.