According to a report by Nikkei Asia, Apple has asked suppliers to reduce the production of AirPods, MacBooks, and Apple Watch series components in the first quarter of this year due to low demand.
Apple has informed several suppliers to reduce the production of parts for AirPods, Apple Watch and MacBook in the first quarter, according to a Nikkei Asia supply chain check of several component suppliers, a sign of a gloomy outlook for consumer electronics citing weakening demand.
Apple’s Mac revenue was $11.51 billion in the fourth quarter last year, up nearly 26 percent from a year earlier. Revenue from wearable devices, including the Apple Watch, was $41 billion, while iPad revenue fell 13 percent year-over-year to $7.17 billion.
In an interview with Nikkei Asia, an unnamed manager at an Apple supplier was quoted as saying, “Apple has alerted us that orders for almost all product lines have been declining since the fourth quarter, partly because demand is not as strong.” Another Apple and Samsung supplier executive described the current situation as “very confusing” and cited ongoing disruptions and complications.
Apple has been facing challenging supply chain hurdles over the past few months, primarily affecting the production of the iPhone 14 Pro. Apple’s main iPhone factories in China have resumed production at near-peak capacity, indicating that iPhone production has returned to normal.