The new iPhone SE isn’t the hit Apple expected it to be

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Apple has reportedly slashed the initial orders for the iPhone SE (2022). The reason? Demand is lower than Apple (or anyone else for that matter) expected.

Nikkei Asia reports that Apple has reduced its order by 20-percent. The initial order was for five million handsets, so that makes four million for the next quarter.

Analysts originally said the handset would sell up to 30 million this year and have now changed their prediction to 20 million.

One of those analysts is Ming-Chi Kuo, who has a good track record of accuracy. As he says, you only have to go look at the “in stock” delivery status on the Apple Store to know that demand is lower than Apple anticipated.

Analysts say this is not because of COVID lockdowns in Shanghai, where Apple has the bulk of its manufacturing. Rising inflation has been mentioned as the main driving factor.

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That said, the war in Ukraine, subsequent sanctions on Russia, and the pandemic could all be factors.

Limited sales in China could also be a big factor, according to JPMorgan. Delivery times have expanded and in-person store pickup is unavailable due to COVID lockdowns as the country struggles with omicron.

Everyone thought the iPhone SE (2022) was going to be a hot seller. It uses the same A15 Bionic that powers the iPhone 13, has 5G, smaller bezels, and all at a reasonable price.

The fact it isn’t selling well is probably more an indicator of the state of the world than a mark against the phone itself.

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Joe Rice-Jones

Maker, meme-r, and unabashed geek with nearly half a decade of blogging experience at KnowTechie, SlashGear and XDA Developers. If it runs on electricity (or even if it doesn't), Joe probably has one around his office somewhere, with particular focus in gadgetry and handheld gaming. Shoot him an email at joe@knowtechie.com.