Apple is reducing orders for nearly all products in early 2023. Apple has already advised several suppliers to reduce orders and production of components for AirPods, MacBooks and Apple Watches due to weaker demand in the current first quarter of 2023. The update on the situation of the Apple supply chain comes from Nikkei Asia which cites several interviews with managers at construction companies on behalf not only of Cupertino but also of Samsung and other major brands in the sector.
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As always, the names of the managers and insiders remain anonymous so as not to unleash the wrath of Cupertino. “Apple advised us to reduce orders for nearly all product lines since the December quarter, in part because demand isn’t as strong,” one respondent said. For another supplier, the reduction in components is expressly indicated for AirPods, MacBooks and Apple Watches, thus suggesting a better situation for iPhones and perhaps also for iPads.
Another vendor executive for both Apple and Samsung described the situation as “Very chaotic,” citing ongoing disruptions and complications. From November to December, Apple and Foxconn faced iPhone production issues at Foxconn’s largest plant in China, with long waits and supply delays now improving. In recent days Foxconn announced that the plant had 200,000 employees and was operating at 90% of its maximum capacity.
With the end of gift shopping, the first three months of the year are traditionally a weak time for consumer electronics, but adding to the periodic decline this year are concerns about the economy, inflation and global trends. Apple product momentum has weakened, according to analyst Jeff Pu, reported by MacRumors, and he expects shipments of iPhones, Macs, Apple Watches and AirPods to decline year-over-year through 2023.
