Chart Horizon News: On Monday (28th), according to media reports, Apple reduced production less than three weeks after launching new cheap iPhones.
So why is Apple cutting production? In addition, what will happen to the company's sales in the Chinese market next? Let's take a look!
01 Apple or cut the iPhone SE, AirPods production!
On Monday (28th), according to Nikkei Asia, Apple is scaling back its new budget for producing the iPhone SE.
Apple has asked suppliers to cut production of the iPhone SE by 2-3 million units, or about 20 percent of initial orders.
In addition, the report also said that Apple will also reduce airPods wireless headphone orders for the whole year of 2022 by about 10 million.
It is worth mentioning that the iPhone SE is not as popular as Apple's more expensive iPhone.
Specifically, according to Data from Counterpoint Research, from launch to Q4 2021, the 2020 iPhone SE accounted for 12% of all iPhone sales.
02 What are the reasons for the reduction in production?
So the question arises: Why is Apple cutting iPhone SE production?
In response, the Nikkei Shimbun commented that the decline in production is mainly due to the current Russian-Ukrainian conflict and inflation as a sign of a negative impact on the demand for electronic products.
In fact, the conflict in Russia and Ukraine has disrupted supply chains and increased inflation risks, which have also hit several major technology companies, including Apple.
03 What could be worse next?
As for the future, Wall Street investment bank JPMorgan Chase said that sales of iPhone SE in China may be limited, analysts said, this is mainly affected by the epidemic, the delivery cycle has been extended, and stores can not pick up the goods.
The new version of 5G's iPhone SE was launched in China on March 18, in addition, benefiting from the surge in sales of other iPhone 13 and other mobile phones, in the fourth quarter of last year, Apple's smartphone market share in China hit a record high, regaining the first position for the first time in six years.
Finally, JPMorgan also warned that for Apple, with the rise of local mobile phone companies in China and India, Apple faces competitive risks because the former is in a more advantageous position in the domestic market and has greater influence.
In addition, JPMorgan chase also said that local tariffs may also hurt Apple's competitiveness in these international markets, including China, India, etc.
What do you think about that? What do you think will happen next with iPhone SE sales? Have you ever used this phone?
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