Apple Reportedly Reducing iPhone SE 3 Production Due to Low Demand

Apple's New Budget iPhone SE 3 Beats iPhone 13, Galaxy S22 Ultra on Geekbench

Just a few days ago, Apple introduced the much-awaited iPhone SE 3, which is the first inexpensive 5G iPhone with the flagship A15 Bionic chipset that’s found on the iPhone 13 series. While this could have been the best-selling iPhone, it doesn’t seem so as Apple has reportedly reduced its production.

Apple to Sell Lesser iPhone SE 3 Units

Four people close to the matter have suggested (courtesy of Nikkei Asia) that Apple is planning to cut the iPhone SE 3 production by 20%, lowering the number of SE 3 units produced by 2 to 3 million units this quarter. The report suggests that the decision to reduce the production of the recent iPhone is accredited to the ongoing Russia-Ukraine war, which can further the global chip shortage issue.

Analyst Ming-Chi Kuo predicts the same thing. Kuo has now estimated the iPhone SE 3 sales to be 15 to 20 million this year as opposed to the previous estimation of 25 to 30 million units. However, the reason for this is said to be something else.

It is revealed that neither the Ukraine war nor the Shangai lockdown will lead to reduced iPhone SE 3 production. The reason will solely be low demand, which wasn’t really expected.

There’s a possibility that the inexpensive 5G iPhone with the latest A15 Bionic chipset wasn’t enough to lure people into buying it. It also is a call for Apple to drop the obsolete iPhone 8-like form factor and come up with something new to attract more users. A refreshed design is what we need!

In addition, Apple is reportedly lowering the production of the AirPods 2 this year. Apple has shipped around 76.8 million units of the second-gen Apple TWS and the reason to cut its production could simply be to make room for the recent AirPods 3 and even the forthcoming AirPods Pro 2, which could launch at the end of this year. The iPhone 13 production could also see a hit but this is expected because of the “seasonal demand.

Apple is yet to make things official, and until that happens, it’s best to take the reports with a grain of salt. If it does end up making fewer iPhone SE 3 models, there are chances the phone might see its end way before expected. What do you think about this possible decision? Let us know your thoughts in the comments below!

SOURCE Nikkei Asia
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