Apple is reportedly already cutting iPhone SE production plans by 20 percent

While high-end gadgets such as the PlayStation 5 and graphics cards continue to sell out at an alarming rate, the desire for lower-cost, more easily produced alternatives may not be as strong. It has been reported that Apple would produce 20 percent fewer iPhone SEs in the following quarter than it had initially anticipated, as well as 10 million fewer AirPods for the whole year 2022, according to Nikkei Asia. Analyst Ming-Chi Kuo revealed precise data in his note on the demand for the SE, stating that he expects Apple to ship 15 to 20 million SEs in 2022, as opposed to his earlier forecast of 25-30 million (representing a fall of between 22 and 66% in total shipments during that time period).

Apple’s manufacturing plans have been halted, according to sources, although supply chain concerns and chip shortages, which have plagued most of the electronics sector, have not been cited as the cause for the delay. Instead, they claim lower-than-anticipated demand as the reason.

Apple is reportedly already cutting iPhone SE production plans by 20 percent

Numerous variables might contribute to people’s disinterest in the iPhone SE, including price, availability, and features. Fears about the crisis in Ukraine and inflation are cited by the Nikkei, while COVID lockdowns in China are mentioned by CNBC, making it physically more difficult for customers in that country to get a new phone. Aside from that, and speaking from personal experience, folks who purchase iPhone SEs aren’t always the kind that rush out and upgrade as soon as a new model becomes available. Additionally, when petrol prices range between $4 and $6 per gallon, they may be substantially less inclined to do so.

Apple is reportedly already cutting iPhone SE production plans by 20 percent

The phone itself is also more expensive – the new model SE costs $30 more than the previous edition, presumably as a result of 5G. As a result, the price difference between it and, example, an iPhone 12 or 13 Mini becomes less (and the Mini lineup is already what the iPhone SE should be).

Although the Mini is substantially more costly when viewed in terms of retail pricing, the monthly rates tell a little different tale. The SE costs $11.94 a month for the 64GB variant at Verizon Wireless. It is possible to lease a 64GB iPhone 12 Mini for $16.66 a month or a 128GB iPhone 13 Mini for $19.44 a month, depending on your needs. Some individuals will be concerned about the price difference, but there are likely to be a large number of others who will say, “What the heck, it’s just $5 a month more.” Additionally, buyers who are more price aware may notice the increased price and opt to continue with what they have for a few more months.

For the sake of clarification, this does not necessarily imply that the new SE is a failure. Nonetheless, a 20 percent decrease in manufacturing is a significant reduction in volume, and it may serve as a benchmark for the SE’s sales across the phone’s (presumably multi-year) lifespan.

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