Talk of production cuts for iPhone SE 3 and AirPods 3 not confirmed by supply chain says report
AirPods 3 orders have allegedly been cut by as much as 30%
Sales of the AirPods 3 have reportedly been cannibalized by the cheaper, and still capable, AirPods 2
Kuo has sharply dropped his forecast of iPhone SE 3 shipments from a range of 25 million-30 million to a range of 15 million-20 million units. Apple did feel the need to hike the price of the latest iPhone SE 3 model by 7.5% most likely due to the expensive components needed to allow the handset to offer 5G connectivity. The iPhone SE 3 starts at $429 compared to a starting price of $399 for the previous model.
Apple reportedly plans to drop the AirPods Pro once the sequel is released
As for the AirPods, Kuo says that customers believe that there is not enough new features in the AirPods 3 to warrant a $50 difference between that model and the AirPods 2. The latter is priced at $129 while the former can be had for $179 although both can be found for less.
There are some differences between the two models such as the surround sound experience that Apple delivers to the AirPods 3 with its spatial audio. The newer model also features an IPX4 IP rating for protection from sweat and splashes. Additionally, the battery life on the AirPods 3 delivers as much as 30 hours of listening time using the carrying case compared to 24 hours with the AirPods 2.
It should be noted that just because suppliers say that they have not yet received orders to cut production, such orders could still be on the way. A well-connected analyst like Kuo could have heard in advance about Apple’s production plans before the company informs the actual suppliers.