At the beginning of March, Apple presented its new budget iPhone. But apparently the iPhone SE 3 is not as popular with buyers as hoped. Apparently this has consequences.
According to a report in the Japanese business newspaper “Nikkei Asia”, Apple has decided to reduce production of the iPhone SE 3. Two to three million fewer smartphones than planned – i.e. around 20 percent – are to be produced accordingly. Apple itself did not comment on this, but has already confirmed that demand for the iPhone SE 3 is weaker than expected.
Inflation and Ukraine war weaken demand for iPhone SE 3
The latest iPhone is aimed primarily at beginners. The iPhone SE 3 comes in the look of the iPhone 8, including a 4.7-inch display and home button. Inside, however, the current processor, which Apple also uses in the iPhone 13, works with the Apple A15 Bionic. 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 maybe because of its somewhat old-fashioned look or because of the current market situation? Analysts are already seeing the first signs that the demand for electronic products is currently declining overall. They see the high inflation rate as reasons on the one hand and the Ukraine war on the other. As a result, several global companies have already lowered their growth forecasts for this year. For example, China, the second largest economy in the world, expects growth of 5.5 percent in 2022 – the weakest in the past 30 years.
An Apple supplier told Nikkei Asia 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 is understandable that [die Verbraucher] save the money for groceries and heating.” Apple has also adjusted the production of the iPhone 13 models somewhat, which is said to have seasonal reasons.
Also read: Opinion: “The new iPhone SE does not suit Apple”
iPhone SE series actually very popular
The iPhone SE series is actually quite popular with Apple users, which is mainly due to the low price. According to market researchers, Apple was able to increase its growth in the USA 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 took second place in the world’s most popular smartphones in the third quarter of 2020.
Despite its now outdated design, the dwindling demand should not be directly related to the iPhone SE 3. Rather, the above-mentioned reasons are probably decisive for the reduced interest in buying. 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 manufacture more than 10 million fewer units in 2022.