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As demand falls, Apple will produce fewer iPhones and AirPods.

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Apple expects to produce 20% fewer iPhone SEs next quarter than expected, or approximately 2 million to 3 million handsets. Apple has also cut AirPods orders by more than 10 million devices for 2022. “It looks extremely similar to the iPhone SE (2020), a second refurbishing of the iPhone 8, and it is even less likely to spark customer desire,” said Eddie Han, an analyst with Taiwan-based Isaiah Research. Analysts have predicted that COVID-19 lockdowns in Chinese cities and a spike in inflation due to the Ukraine crisis will impact smartphone demand this year, and the news of lower demand confirms their predictions.

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