Apple is already slashing iPhone SE 3 production due to weak demand

Apple is already slashing iPhone SE 3 production due to weak demand

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The new iPhone SE is available is available in the same colors as before, but it's much-improved on the inside.
It's not looking good for iPhone SE.
Photo: Apple

Apple is reportedly making big cuts to iPhone SE 3 production less than two weeks after the device made its official debut. Two separate sources claim Cupertino is seeing weaker-than-expected demand for the entry-level device.

One analyst points to the fact that the third-generation is still “in stock” — without any delays in shipping — as proof that it is not selling as Apple anticipated. Shipment estimates have been cut by 10 million units as a result.

iPhone SE 3 an early flop?

Despite looking just like its predecessor (and costing $30 more), iPhone SE 3 is a pretty compelling upgrade. It packs Apple’s latest A15 Bionic processor — just like iPhone 13 — plus improved battery life and camera performance.

It seems, however, that those changes aren’t enough for some consumers. Apple has reportedly cut iPhone SE 3 production by 20% because not enough people are buying its latest handset.

iPhone SE production slashed

“Apple plans to make about 20% fewer iPhone SEs next quarter than originally planned,” reports Nikkei Asia, citing sources who blame the war in Ukraine and looming inflation for poor demand.

TF International Securities analyst Ming-Chi Kuo also reported on Monday that “new iPhone SE demand is lower than expected.” He said that the iPhone SE’s shipping status of “in stock” is “one of the proofs” it’s not selling well.

Kuo has cut his iPhone SE 3 shipping estimates to 15-20 million units (from 25-30 million units) for the remainder of 2022 in response. Nikkei also said iPhone 13 production has been reduced, but that’s normal at this time of year.

What happened to iPhone SE?

It’s hard to nail down what exactly is the cause of weaker-than-expected iPhone SE demand — if indeed Apple has cut its orders. Lots of different factors could impact manufacturing numbers shortly after a device’s launch.

But Apple probably can’t ignore the fact that consumers are beginning to get sick of iPhone SE’s aging design, which Cupertino has continued to churn out since iPhone 8 made its debut way back in 2017.

Some reviewers called it a “tired” design, while most agreed that it’s about time Apple finally ditched it in favor of something a little more modern. iPhone SE is the only iPhone that still ships with a Home button and Touch ID.