Apple Reportedly Cutting iPhone SE Production Just Weeks After Launch Due to 'Weaker-Than-Expected' Demand

[MacRumors]

Apple is reportedly cutting production for the new third-generation iPhone SE just weeks after launch due to uncertainty caused by current global conflict and alleged low demand, according to a report from Nikkei Asia citing unnamed sources.

According to the report, Apple has informed suppliers to cut back on production of the iPhone SE for this quarter by as much as two to three million units, citing "weaker-than-expected demand."

Unlike the cut in iPhone SE production caused partly by low demand, Apple is also cutting down on the production of the iPhone 13 series, but sources familiar with the matter told Nikkei Asia this cutback is due to seasonal demand change. Per the report, Apple is also cutting the production of AirPods but fails to specify which model or models.

Coinciding with the report, reliable Apple analyst Ming-Chi Kuo said today in a tweet that he is cutting estimates on shipments of the new iPhone SE from 25 to 30 million to around 15 to 20 million units for 2022. Kuo said the lower shipments were a result of low demand.

https://twitter.com/i/web/status/1508316379656880130

Apple released the new iPhone SE earlier this month with the same 4.7-inch form factor as the previous model but with the addition of 5G. The new iPhone SE is the only iPhone in the lineup that still features a physical Home Button and Touch ID but now benefits from the faster and more energy-efficient A15 Bionic chip. The iPhone SE starts at $429 with 64GB of storage.

See our roundup to learn everything you need to about Apple's latest iPhone.

Update: Two Apple suppliers responsible for AirPods have refuted Nikkei Asia's report that production has been cut, according to posts shared on Twitter by analyst Ming-Chu Kuo.

Article Link: Apple Reportedly Cutting iPhone SE Production Just Weeks After Launch Due to 'Weaker-Than-Expected' Demand

 

[berrymetal]

I get the whole "I just need a smaller iPhone" crowd, but I think it's foolish on Apple to count on that small audience without at least having a design refresh. Totally expected

 

[Fried_Gold]

Surprise surprise not many people want an iPhone 8 design in 2022.

 

[Danfango]

Market insight failure.

If you want a crap phone, you probably don't want that crap phone because it's too expensive. If you wan't a good phone, that's not it. If you want an Apple crap phone, you're probably just going to buy a 13 on contract and pay monthly and not have a crap phone.

 

[123]

Maybe that ten year old design doesn't cut it anymore when every cheap China device looks way more modern and costs a fraction of the price.

 

[DragonSky]

Upgraded from a SE1 to the new SE. Love the thing. Good battery life. Useful size and the camera is pretty good. Ok the cost was a little higher than I would like but it’s doing what I need. Happy.

 

[contacos]

It is over 500 Euro and looks like a phone from 5+ years ago. That combination just doesn’t seem right to people on a budget. Those people will get a cheap Galaxy phone (~300 Euro and actually does not look dated. The Galaxy „A“ line for example) or an iPhone on a contract (if they really want an iPhone) and in that case it certainly won’t be a SE.

By the way I love how the iPhone SE costs 520 Euro but the Apple page says you can get up to 655 Euro for your old iPhone. Doesn’t seem right

 

[JosepPont]

What do they think? An old design at a brand new price?

🎼oh no, oh no, oh no no no no no

 

[44267547]

If I had to wager, this is probably the last refresh for the iPhone SE in general. I don’t think Apple will continue this train of releasing an entry level/budget phone by-annually. It’s really intended for third-party markets where smart phones in general are just too expensive. But when you look at the average junk android phone that sells for $200 in India for example, the iPhone SE 3 still isn’t competitive enough at that pricing segment of ~$429.00.

 

[jjohnstonjr]

As an Apple user, I hope this wakes up the powers that be that assist in the design of these devices. Consumers are growing tired of the same designs being presented in front of them as “upgrades”. Hence the reason I didn’t upgrade this year from the 12 Pro Max to the 13 Pro Max.

 

[vtrautia]

Well its 8 year old chassis with outdated lcd display but cpu is top notch. What do you expect?

 

[jeffpeng]

Surprise surprise not many people want an iPhone 8 design in 2022.

I do. And my SE 2020 is still fine. 😅

I guess the actual problem is that most people this phone is for already have the SE2020. And there is no good reason to upgrade now again. Plus those folks, me included, keep the damn thing until it can’t do something important anymore or just breaks. Not gonna happen in 2 years. That why I was kinda surprised they even bothered to upgrade it. Especially since the A13 is 7nm, and that is dirt cheap as of now - so cheap they put it in a display just to drive the webcam and speakers.

 

[ruka.snow]

I get the whole "I just need a smaller iPhone" crowd, but I think it's foolish on Apple to count on that small audience without at least having a design refresh. Totally expected

There is a smaller iPhone now. The SE is just the cheep iPhone.

 

[chucker23n1]

Instead of raising the price from $399, they should've just put an A14 in. What an odd choice to raise the price to such an uneven number.

They're also fast approaching the point where 2014's iPhone 6 design just isn't going to cut it.

 

[Cycom]

Duh. It’s a crap phone.

 

[Merkie]

Surprise surprise not many people want an iPhone 8 design in 2022.

Which is almost the same as the 2014 iPhone 6 design.

 

[BvizioN]

What did they really expect? You can go so far with recycling a decade old design! I am surprised they got this far with it.

 

[MrZippyUK]

Funny my sister asked what phone she should get yesterday, she has budget android at moment. I recommended a Samsung A52/53 as much better value than the iPhone SE with its tiny LCD screen and a retro home button.

 

[happy-raccoon]

Yeah, what a surprise. Seriously, even for Apple, the design is way too old and it just costs too much. If I want a small phone, I would pay 100 more and go with the 12 mini. The price of the SE is not a budget area. Make it a price like the entry iPad and were talking.

 

[femike]

Apple has enough money to engineer a change to the design, even while keeping the same phone size, bezel and home button and LCD screen. Make it the same case design as the other phones and colours too. But no, they keep the same old 8 year design, and even charge a higher price for it now. Also people who would buy the cheaper phones would probably want to have a headphone jack too. Apple is cost cutting at every turn. Apple is being greedy and lazy. It's time for Tim Cook to go.

 

[PortoMavericks]

Had one for content creation from my past work.

Used my Galaxy S20+ instead. The phone is fast but the screen size and the OS features make it feel slow somehow. Poor battery life, camera features that didn't work with pets and stuff like that is annoying.

If Apple wanted they'd able to deliver something similar to the Google Pixel line with machine learning.

The other thing that makes me a bit wary with the Mini and a mew generation of SE is the small screen size. This can hold back the evolution of iOS and this makes me wonder how difficult is now for a dev to figure out UX for such tiny screens.

 

[Nismo73]

And to think they want the phone to be in the lineup for two years.

 

[LFC2020]

Nice!!! I’ll pick one up for $300 once these retail stores get stuck with them & end reducing the price. 😁

 

[Berti10]

What did they expect? Someone who buys a $429 phone to his $60/month 5G Plan?

 

[sracer]

I get the whole "I just need a smaller iPhone" crowd, but I think it's foolish on Apple to count on that small audience without at least having a design refresh. Totally expected

I understand that people tend to point to one reason, but the appeal of the SE line has always been multi-faceted. It's not just about a smaller iPhone. The iPhone 12 Mini is slightly smaller than the SE. So it's not JUST a smaller phone.

Another reason for interest in the SE is the older design aesthetics in comparison to the leading edge models. As difficult as it might be to believe, that there ARE people out there that actually prefer those older designs.

And then there's the price. The current MSRP of $429 makes it very attractive for those who want to enter (or remain in) the iPhone ecosystem.

If demand for the SE is less than expected (I don't necessarily believe that), there could be other factors other than the SE not being appealing in and of itself. Things like the uncertainty in the economy, anticipation of newer iPhone models, etc.