© Reuters. Apple (AAPL) Stock Dips on Report It Plans to Cut iPhone and AirPods Output
Apple (NASDAQ:) is reportedly reducing the output of its iPhone and AirPod devices as the war in Ukraine and inflation risks bear upon demand for consumer electronics.
The tech giant plans to reduce the output of iPhone SEs by roughly 20% in the following quarter, which translates to a production cut of 2 million to 3 million units, according to a report in .
The company also cut output for its AirPods by over 10 million units for the entire 2022, due to weaker demand amid geopolitical tensions and inflation concerns.
A few weeks ago, Apple announced 5G support for its iPhone SE, the companys only low-cost phone meant for buyers who are looking for more affordable options. The previous version of the iPhone SE accounted for 12% of all iPhone sales from its rollout in Q2 2020 until the end of the last year, according to Counterpoint Research.
Apple also wants to reduce the output of its entire iPhone 13 range by several million units, due to weaker seasonal demand.
Apple stock is down 1.5% in pre-open Monday on the Nikkei report.
By Senad Karaahmetovic
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