Apple Reducing iPhone SE 3 Production Due to Low Demand

BY Chandraveer Mathur

Published 28 Mar 2022

2022 iPhone SE

Less than two weeks have elapsed since the iPhone SE 3 was launched commercially. Supply chain rumors suggest Apple is already slashing production for the device by a whopping two to three million units.

Citing unnamed sources familiar with the matter, Japanese publication Nikkei Asia claims Apple is easing off production due to low demand. The report adds that the company’s suppliers are also easing off on the production of AirPods and the iPhone 13 series. The report doesn’t specify which model of the AirPods is being produced in lower volumes, but it attributes the iPhone 13 production drop to seasonal changes in demand.

Specifically, the report notes that Apple has reduced iPhone SE 3 production by 20 percent for the coming quarter, compared to the volume produced this quarter. The anonymous sources blamed the Ukraine-Russia war, the looming threat of inflation, and low demand for Apple’s actions.

Tianfeng International Securities analyst Ming-Chi Kuo incidentally corroborated the rumor. In a tweet about the matter, the analyst says the demand for the new iPhone SE 3 is “slower than expected.” He opines that since the phone hasn’t accrued pre-orders, it isn’t performing as well as Apple had hoped.

Kuo now estimates that Apple will manufacture 15-20 million iPhone SE 3 units instead of the previous forecast of 25-30 million units in 2022.

Why Apple slashed iPhone SE 3 production is shrouded in mystery because the company hasn’t confirmed its actions or explained why. Reviewers noted that the design is dated for 2022, and besides the new processor, Apple hasn’t changed much.

Why do you think the iPhone SE 3 production has been reduced? Please share your thoughts with us.