While high-end devices such as the PlayStation 5 and graphics cards may continue to sell out, demand for less-expensive budget options may not be as strong. According to Nikkei Asia, Apple will produce 20% fewer iPhone SEs in the next quarter than expected, and 10 million fewer AirPods for the entire year of 2022. In his letter, noted analyst Ming-Chi Kuo revealed specific data about the SE’s demand, stating that he expects Apple will ship 15 to 20 million SEs in 2022, down from his earlier forecast of 25-30 million (a decrease of 22 to 66 percent for the year).
There are a number of reasons why people may be less interested in the iPhone SE. Fears over the Ukraine conflict and inflation are mentioned by Nikkei, while COVID lockdowns in China are mentioned by CNBC, making it physically more difficult for Chinese consumers to purchase a new phone. Plus, in my experience, folks who buy iPhone SEs aren’t always the kind to rush out and upgrade as soon as a new model is out. When petrol prices range from $4 to $6 a gallon, they may be even less likely to do so.
Of course, the Mini is substantially more expensive when purchased outright, but monthly costs are a different issue. The SE costs $11.94 a month on Verizon for the 64GB model. A 64GB iPhone 12 Mini costs $16.66 a month, while a 128GB iPhone 13 Mini costs $19.44 per month.
All of this isn’t to imply that the new SE is unquestionably a failure. Still, a 20% reduction in output is significant, and it may serve as a benchmark for the SE’s sales over its (presumably multi-year) existence. While it’s too early to say what this means for future generations of the SE, it’s likely that discussion is already underway within Apple – if I’m being optimistic, perhaps the SE’s lackluster reception will prompt the firm to take a Mini / Max strategy for the next SE.
