What They Say
Nikkei Asia reported that Apple has cut back its forecast for the iPhone SE production in Q2 2022 by around two to three million units as it sees markets reacting to world events, especially the war in Ukraine which it expects to affect purchases because of increasing fuel and food prices.
Analyst Ming-Chi Kuo said that he expects supply to drop from the 25 to 30 million range to as low as 15 to 20 million for the year. Apple has also scaled back orders for AirPods, which are likely to be down by as much as 10 million from the 76.8 million shipped last year, according to Counterpoint data.
Counterpoint also told the Nikkei that end-user demand is weak in China and overall there seemed to be high levels of inventory, so there will probably be a correction.
What We Think
Big markets are bound to be affected by macroeconomic swings. The CE markets are going to be in for a couple of tough years, I think. (BR)
