Apple to cut iPhone, AirPods output, Nikkei reports

March 28 (Reuters) – Apple Inc (AAPL.O) is arranging to lower Apple iphone and AirPod creation due to a demand from customers slowdown brought about by the Ukraine crisis and growing inflation, the Nikkei newspaper noted on Monday, citing resources briefed on the matter.

The company ideas to develop 20% less Apple iphone SEs – or about 2 million to 3 million models – up coming quarter than originally planned, the report mentioned. It included that Apple has also decreased 2022 orders for AirPods by a lot more than 10 million units.

Apple, whose shares have been down about 2% in premarket trading, did not quickly reply to a Reuters ask for for remark.

The news of weaker need mirrors forecasts from analysts who have warned that COVID-19 lockdowns in Chinese cities and a surge in inflation because of to the Ukraine conflict could harm smartphone need this year.

Apple, in unique, faces issues from the lack of a design up grade for the most up-to-date SE and a $30 improve in its price from the 2020 product, analysts have stated.

Ming-Chi Kuo at TF International Securities on Monday slashed his shipment estimate for Iphone SE this year to involving 15 million and 20 million units, from 25 million to 30 million models previously.

“It appears very comparable to the Apple iphone SE (2020), a 2nd refurbishment of the Iphone 8, and it is even less probable to arouse shopper demand,” Taiwan-based Isaiah Investigation analyst Eddie Han said, reducing his forecast sales for the design by 5 million units.

Apple is anticipated to launch a brand new Apple iphone lineup later this 12 months, but analysts say it was far too early to forecast any impression on the approaching assortment.

Reporting by Jahnavi Nidumolu and Nivedita Balu in Bengaluru Enhancing by Anil D’Silva and Aditya Soni

Our Expectations: The Thomson Reuters Rely on Rules.