May 28, 2022

Apple’s latest earnings report showed the hardware giant beat expectations amid continued chip shortages. Overall, the company reported a 9% increase in iPhone sales, while the rest of the market fell. When it comes to navigating the supply chain, there’s a lot to be said for the leverage that comes with being one of the biggest players.

But even such a giant as Apple has not been spared by global events. In the early days of the pandemic, the company declined to give advice due to uncertainty. This is probably the right move given how the world has changed over the past two years. And now the latest iPhone SE is caught in the perfect storm of global problems.

Citing conversations with sources close to the case, Nikkei Asia reports that Apple is cutting production of the budget device by 20%. There is no doubt that observers expected some reduction thanks to the invasion of Ukraine and the blow of inflation once or twice, but the size of the figure came as a surprise for the new phone – and 2020. from. Somewhere between 2-3 million phones declines per quarter.

Earlier this month, Apple announced that it would stop sales in Russia following its invasion of neighboring Ukraine. “We will continue to assess the situation and inform the relevant governments of the actions we are taking,” the company said at the time. “We join all those around the world who are calling for peace.”

Several other major consumer hardware makers have taken similar steps, including Apple’s archrival Samsung. Both brands are regularly ranked among the top five smartphone market leaders in the country.

The global chip shortage continues to be a factor here, along with broader inflation concerns that have influenced purchasing decisions. These types of financial issues have always played a role in the sales performance of products such as smartphones, which are sometimes classified as non-essential purchases. At the very least, this results in users using older devices a little longer than they would otherwise.

In addition to the impact on the SE, the publication notes that AirPods orders for all of 2022 have skyrocketed by around 10 million. The decline in iPhone 13 production is mainly due to fluctuations in seasonal demand.

gaming-updates has reached out to Apple for comment.

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