Apple will cut production of iPhone and AirPods

Apple has notified its suppliers that it is cutting production orders for smartphones and headphones. This is reported by Reuters, citing a report by the Nikkei agency.

In a conversation with reporters, media sources said that the American company has revised its plans for the release of iPhone and AirPods. Apple plans to produce 20 percent fewer iPhone SE models in the coming quarter, cutting the number of planned devices by about two to three million units. The number of iPhone 13 will be reduced by two million copies. Also, the American IT giant has reduced orders for AirPods wireless headphones by 10 million units.

Sources of the agency named the Ukrainian crisis and impending inflation as the main reasons for such a decision. Apple believes that demand for electronics will decrease in the coming quarter, so the company decided to reduce the amount of inventory in warehouses.

The specialists noted that against the backdrop of events in the world, the supply chain was disrupted in the oil, energy and commodity markets. Analysts noted that the looming inflation creates concerns about the demand for consumer electronics. Also, the decline in production may be due to limited supplies of equipment to Russia, where, according to IDC, Apple sold about five million iPhones in 2021.

Apple announced the termination of sale of all equipment in Russia in the beginning of March. The company also announced the restriction of the Apple Pay payment system and “other services”.