The source said that due to weak demand, Apple asked suppliers to reduce production of parts for AirPods, MacBook and Apple Watch.
CTOnews.com, January 3 (Xinhua)-- Apple has asked suppliers to reduce production of AirPods, MacBook and Apple Watch components in the first quarter of this year due to weak demand, according to a report from Nikkei Asia.
Apple has told several suppliers to reduce production of AirPods, Apple Watch and MacBook components in the first quarter, a sign of the bleak outlook for consumer electronics, citing weaker demand, according to Nikkei Asia's supply chain inspection of several parts suppliers.
In the fourth quarter of last year, Apple's Mac revenue was $11.51 billion, up nearly 26% from a year earlier. Revenue from wearables, including Apple Watch, was $41 billion, while iPad revenue fell 13% year-on-year to $7.17 billion.
In an interview with Nikkei Asia, an anonymous manager of an Apple supplier was quoted as saying: "Apple has reminded us that orders have declined in almost all product lines since the fourth quarter, in part because demand is not so strong." Another executive at Apple and Samsung described the situation as "very chaotic" and cited ongoing disruptions and complexities.
CTOnews.com learned that Apple has been facing challenging supply chain obstacles over the past few months, mainly affecting the production of the iPhone 14 Pro. Apple's main iPhone plant in China has resumed production at near peak capacity, indicating that iPhone production has returned to normal.