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A report from firm Nikkei Asia revealed that Apple may be looking at cutting production of the iPhone SE and AirPods. for the second quarter of this year. The reduction in production would represent about 20% in the case of iPhones, while hearing aids would see their production reduced to just 10 million units.
According to the analyst Ming-Chi Kuo, Apple will produce between 15 and 20 million iPhone SE during the rest of the year, a figure that is below the forecasts of between 25 and 30 million that the company expected to put on the market. market in 2022.
The Nikkei Asia report suggests that this decision of the company would be driven by a fall in demand stronger than Apple expected.
Among the factors that would be causing the reduction in demand are the war between Russia and Ukraine, price gouging caused by inflation and lockdowns in china caused by new covid outbreaks.
To all this is added that the cost of the iPhone SE is higher than the previous generation, largely due to the addition of support for 5G networks.
The possible reduction in the production of equipment, which has not been confirmed by Apple, It could mean a serious blow to the company, taking into account that the new iPhone SE, being one of the cheapest models of the brand, is in turn one of the highest income earners. in terms of global sales.
The report does not detail if Apple plans to make any other types of production cuts and if these, if they occur, could affect some of its most premium models, such as the iPhone 13 Pro or the Pro Max version.
lack of processors
Another element that could affect Apple’s sales and production expectations are the processor shortage problems, which could become more acute with the appearance of new covid outbreaks in China.
If the Asian giant decides to apply a new wave of quarantine and economic activity decreases it is very likely that Apple will have to lower its projections for this year.
Taken together, all these factors could be a strong blow to the company’s income, which reported during the Q1 2022 earnings release that it experienced record revenue.
The published data shows a cash flow of more than $100,000 million, which represents an increase of 11% compared to 2021.
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