Apple Purportedly Cuts AirPods Production by 25-30% Due to Weakening Demand

Apple is cutting production of its AirPods by 25-30% due to weakening demand, reports Nikkei. The company now expects to make between 75-85 million units this year, compared to a previous forecast of 110 million units.

"The most significant order reduction is for the second quarter toward the start of the third quarter," said one of the people familiar with the matter. "The levels of inventory [in warehouses] and in-store stocks of AirPods are currently high ... and demand is not as strong as expected."

According to Counterpoint, Apple shipped 72.8 AirPods last year, taking 31% of the market; however, that is said to have fallen short of the 80-90 million units expected.


"It is not possible to grow 30%, 40%, 50% by shipments every year for a long time. ... At some point the growth will slow down and normalize," said an executive-level source. "The time of high growth for AirPods might be past."

Currently, you can purchase AirPods Pro on sale for $52 off, bringing the price down from $249 to $197. AirPods 2 with wireless charging case are on sale for $49.01 off and AirPods 2 with wired charging case are on sale for $30.02 off.

Apple is also rumored to be working on third generation AirPods for release this year. You can check out some alleged photos here.

Please download the iClarified app or follow iClarified on Twitter, Facebook, YouTube, and RSS for updates.


Read More