Apple is already slashing the iPhone SE production plan by 20 percent

Apple is already slashing the iPhone SE production plan by 20 percent

While luxury electronics like the PS5 and graphics cards are still being sold left and right, the demand for easily made budget offers may not be high. According to Nikkei Asia, Apple plans to make 20 percent fewer iPhone SEs in the next quarter and 10 million fewer AirPods for the full 2022. Renowned analyst Ming-chi Kuo has provided specific numbers in his note on demand. For SE, he says Apple will send 15 to 20 million SEs in 2022, up from its previous estimate of 25-30 million (down 22 to 66 percent year-over-year).

The report does not cite its references or sources. Instead, they cite lower-than-expected demand for Apple’s latest budget-focused phones.

There are a number of factors that may make people less interested in the iPhone SE. Nikkei cited fears of war and inflation in Ukraine, while CNBC cited the Kovid lockdown in China, which has made it physically difficult for consumers there to get new phones. Moreover, from personal experience, people who buy iPhone SE do not have to run out and upgrade as soon as the new model becomes available. Even if the gas is 4 to $ 6 per gallon, it may be less likely to do so.

The price of the phone itself is also high – the new generation SE costs $ 30 more than the last, thanks to 5G. It also lowers the price between the iPhone 12 or 13 Mini (and a mini lineup like the iPhone SE already).

Of course, looking at the retail price, the Mini is significantly more expensive, but the monthly prices are a little different story. On Verizon, the SE is .9 11.94 per month for the 64GB model. You can get 64GB iPhone 12 Mini 16.66 per month or 128GB iPhone 13 Mini $ 19.44 per month. The price difference will be significant for some, but there are many who think, “What’s more, it’s just $ 5 extra per month.” And more price conscious consumers may see higher prices and decide to keep what they have for a few more months.

All of this does not mean that the new SE is a flop. Still, 20 percent is a big drop in production and could help set a reference point for SE sales on the phone’s (potentially multi-year) life cycle. And it’s too early to say what this might mean for future generations of SEs, a discussion that’s probably already happening in Apple – if I’m optimistic, then perhaps a warm welcome will motivate the company to use the mini / max approach. Next SE.

Sneha Mali

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