By Dhirendra Tripathi
Investing.com – Apple Inc. (NASDAQ:AAPL) stock traded 1.8% lower in premarket Monday on reports the company could cut the output of its iPhone and AirPods devices as the Ukraine crisis and looming inflation weigh on demand for consumer electronics.
According to a report in The Nikkei, the company plans to make about 20% fewer iPhone SEs next quarter, or lower production orders by about 2 million to 3 million units than originally planned, due to weaker-than-expected demand, Nikkei said.
The world’s most valued company has also reduced orders for its AirPods wireless headphones by more than 10 million units for the current year as lukewarm demand calls for trimming of inventories, the newspaper said.
The earlier 4G iPhone SE accounted for 12% of total iPhone sales from its launch in the second quarter of 2020 until the end of 2021, with Japan being the biggest market after the U.S., according to data and intelligence firm Counterpoint Research.
The report said the company has also asked suppliers to make a couple of million fewer units of the entire iPhone 13 range than previously planned, attributing this to seasonal demand.