Apple will make twenty percent fewer devices of the newly announced iPhone SE. It does so, according to sources, because there is less demand for the device.
According to Nikkei Asia, Apple has informed its manufacturers that it will take two to three million fewer iPhone SE units for the next quarter, about a fifth less than usual. It also expects to make about ten million fewer AirPods for 2022, compared to the 76.8 million ears shipped in 2021.
The Asian business newspaper notes that chip shortages or logistical problems do not prompt this decline due to lower demand. Instead, it points to, among other things, Russia’s war against Ukraine (which means that Apple no longer sells anything in Russia) and inflation, which makes people less likely to spend money on a new device.
The Verge adds another reason: because the iPhone SE is marketed as cheaper, it is a device with a different target audience. An audience that does not run to the store in the weeks after the device comes out but often waits until their device needs to be replaced.
At the same time, the price difference with an older iPhone is relatively small, so Apple’s old models compete with the new SE.