Nikkei and Ming-Chi Kuo Sees Reduction in iPhone SE Production

29 MARCH 2022 - What do “the Ukraine war and looming inflation” have in common? They’re contributing to Apple cutting iPhone SE production plans by 20% next quarter, according to a piece from Nikkei. Well, according to so-and-so’s “briefed on the matter” who spoke with Nikkei Asia.  According to the piece, four secret sources tell Nikkei Asia that Apple:

…is now telling multiple suppliers that it aims to lower production orders by about 2 million to 3 million units for the quarter, citing weaker-than-expected demand…

Nikkei’s not the only source making the assertion. TF International analyst Ming-Chi Kuo hit Twitter on Sunday night/Monday morning saying:

Shanghai lockdown doesn't affect the iPhone SE production. However, the new iPhone SE demand is lower than expected (the delivery status "in stock" as one of the proofs), and I cut my shipment estimation in 2022 to 15-20M (vs. 25-30M previously).

I saw a headline somewhere that said the reported reduction in production proves that Apple should drop the whole iPhone SE idea. If you’ll allow me to opine, I think that’s wrong for a couple of reasons: One - secret sources aren’t proof of anything. They could be correct. They could be mistaken. But, assuming they are correct gets us to thing Two -  no one is saying there’s a lack of interest in the phone itself. But concerns over inflation and war may weigh more than a new phone right now. As Nikkei points out:

Numerous governments, from the U.S. and the EU to Japan, South Korea and Taiwan, have imposed economic sanctions against Russia over its invasion of Ukraine, and the supply chain has been rocked by turmoil in the oil, energy and raw materials markets. The looming inflation risks further adding to people's living costs and creates concerns over demand for consumer electronics products.