To much fanfare earlier this month, the third-generation Apple iPhone SE 3 was introduced at its “Peek Performance” event. Two credible sources say that demand for an iPhone 8-like form factor, albeit with Apple’s A15 bionic chip and 5G connectivity, may have peaked right after the announcement of the new iPhone 13 model.
Despite the release of the iPhone SE 3’s latest iteration, two independent and trusted analysts have claimed that demand for the device is lower than Apple expected.
According to 9to5Mac, Apple reportedly told its suppliers to cut production by “millions of units”.
Compared to its predecessor, the new model is $30 (or AU $30) more expensive, at $429 in the United States and Australia. The 64GB version of the iPhone SE (2022) starts at £419 (US $429, AU $719). If you’re looking for a comparison, the iPhone SE (2020) costs $419 in the UK, $399 in the US, and AU $749.
So, who made the statements? There have been reports in the major financial publication Nikkei Asia suggesting that Apple is drastically cutting production, but the bulletin suggests that factors other than phone popularity are at fault.
Nikkei Asia sources say Apple plans to make about 20% fewer iPhone SEs than originally planned next quarter, which is one of the first signs that the Ukraine war and looming inflation have begun to dent consumer electronics demand.
Ming-Chi Kuo, a well-known Apple analyst, agrees with the low demand report:
According to Kuo, “The production of the iPhone SE is unaffected by the Shanghai lockdown.” Because of this, I’ve reduced my shipment forecast for 2022 to 15-20 million units (down from 25–30 million previously), but the demand for the new iPhone SE is lower than expected. It’s a good idea.
Anyhow, if these predictions come to fruition, the 2022 iPhone SE may sell fewer units than the 2020 model for reasons unknown. Is it time for Apple to get rid of its cheapest 4.7-inch HD Retina LCD display iPhone design, which still sports the Home button that hasn’t been seen on the standard iPhone lineup since the 2017 iPhone 8 and iPhone 8 Plus? Finally, the consumer’s wallet is the ultimate deciding factor.