Newest iPhone has a problem – Apple reacts

At the beginning of March, Apple presented its new low-priced iPhone. But apparently the iPhone SE 3 is not as well received by buyers as hoped. This has now apparently had consequences.

According to a report in Japanese business daily Nikkei Asia, Apple has decided to scale back production of the iPhone SE 3. According to the report, two to three million fewer smartphones than planned – around 20 percent – will be produced. Apple itself did not comment on this, but already confirmed that demand for the iPhone SE 3 has been weaker than expected.

Inflation and Ukraine war weaken iPhone SE 3 demand.

The latest iPhone is primarily aimed at newcomers. The iPhone SE 3 has the look of the iPhone 8, including a 4.7-inch display and a home button. Inside, however, the Apple A15 Bionic is the current processor that Apple also uses in the iPhone 13. 5G is also available for the first time in the SE series. Read more about the iPhone SE 3 here.

The reasons for the reduced interest in the new device are currently unclear. Is it possibly due to its somewhat old-fashioned look or the current market situation? Analysts are already seeing the first signs that demand for electronic products is currently declining somewhat overall. They see the high inflation rate on the one hand and the Ukraine war on the other as reasons. As a result, several global companies have already lowered their growth forecasts for this year. For example, China, the world’s second-largest economy, expects growth of 5.5 percent in 2022 – the weakest in the past 30 years.

Speaking to Nikkei Asia, an Apple supplier indicated that it was not surprising that Apple was a bit more cautious in the June quarter. “The war has affected spending in European markets. … It’s understandable that (consumers) are saving the money for food and heating.” Apple also adjusted production of the iPhone 13 models somewhat, according to the report, though this is said to be due to seasonal factors.

iPhone SE series actually very popular

Actually, the iPhone SE series is quite popular among Apple users, which may be mainly due to its low price. According to market researchers, Apple was able to increase its growth in the US in 2020 with the iPhone SE 2020. Compared to the previous year, it was around 10 percent higher. According to Canalys, the iPhone SE 2020 even ranked second among the world’s most popular smartphones in the third quarter of 2020.

Despite its now outdated design, the dwindling demand is probably not directly related to the iPhone SE 3. Rather, the above-mentioned reasons are probably the decisive factor for the reduced buying interest. This would also be supported by the fact that Apple is not only reducing the production of its iPhones, but also that of the AirPods. “According to Reuters , Apple will produce more than 10 million fewer units in 2022.

Sources

  • Nikkei Asia
  • Reuters