Apple has asked suppliers to produce fewer components for the AirPods, MacBook, and Apple Watch in Q1 2021 due to weak demand, according to Nikkei Asia.

Even though Apple had a fairly strong performance in Q4 2021, the company has asked the suppliers to cut component orders. Apple reported a Mac revenue of $11.51 billion, a YoY increase of 26%. Wearable revenue, which includes the Apple Watch and Apple Fitness+, reached $41 billion. However, iPad revenue did drop by 13% YoY to $7.17 billion.

Nonetheless, the report claims that Apple has instructed several suppliers to build fewer components for some of its products. One anonymous manager at an Apple supplier stated that “Apple has alerted us to lower orders for almost all product lines actually since the quarter ending December, partly because the demand is not that strong.”

Another executive at a supplier for both Apple and Samsung described the current situation as “very chaotic,” citing ongoing disruptions and complications in the supply chain. 

It’s worth noting that Apple has also faced several supply chain challenges in recent months, mainly affecting the production of the iPhone 14 Pro. However, the company’s main iPhone plant in China has now reportedly resumed production at near-peak capacity, indicating that iPhone production is returning to normal. The company hasn’t cut component orders for iPhone production yet.

Source: Nikkei Asia