Apple is limiting the production of its recently launched ‘budget’ smartphone, the ‘iPhone SE 2022’ owing to lower-than-expected demand. The tech giant has urged suppliers to reduce the manufacturing of the iPhone SE, by roughly 2 million to 3 million devices, or about 20 per cent of initial booking orders.

In fact, the iPhone SE is still not as well-known as Apple’s higher-priced iPhones. According to research, from its launch through Q4 2021, the 2020 edition of the iPhone SE contributed to only 12 per cent of total iPhone sales.

It is worth mentioning that Apple also slashed orders for AirPods by around 10 million devices for the current year.

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The 5g enabled iPhone SE is marketed by the company as an alternative for the premium devices from Apple. However, its price tag of Rs105,238 (excluding PTA charges) still seems surprising as compared to the earlier SE model which was offered with a lesser price tag of Rs72,520 (excluding PTA charges).

Read more: Apple to offer subscription-based service for selling iPhone, iPad, MacBook

According to Nikkei, the drop in production is a result of the Ukraine crisis and inflation’s detrimental influence on the demand for gadgets.

Following Russia’s invasion of Ukraine, several major IT companies, including Apple, ceased sales in the country. The United States, the European Union, Japan, South Korea, and Taiwan have all slapped economic sanctions on Russia, causing supply chain disruption and raising inflation concerns.