According to a new report, Apple is reducing its production of AirPods and its iPhone SE model due to the Ukraine crisis affecting consumer purchasing.
The tech giant has told suppliers it intends to reduce production orders for the SE model of its phone by 20%, or 2 to 3 million units, in the next quarter, Nikkei reported.
Apple is also planning on reducing its orders for the popular AirPods headphones by more than 10 million units in 2022.
Several factors are playing a role in the company's move to reduce production, including economic pressures stemming from the Russian war on Ukraine and international response to it, Nikkei reported.
Global supply has run into numerous issues after world governments and private companies began sanctioning Russia, creating volatility in energy and grains markets.
The war in Ukraine is expected to cause inflation to accelerate while consumers start spending their money on other things instead of on tech.
The announcement comes after Apple recently announced the launch of its 5G iPhone SE. Now, an executive at an Apple supplier told Nikkei that they don't expect many people to be buying during the current climate.
"The war has affected spending at the European markets. ... It is understandable [consumers will] save the money for food and for heating," the executive said.
Apple was one of several companies to take action against Russia for its invasion of Ukraine, suspending all product sales and removing state news apps RT and Sputnik News from the App Store outside of the country.
Apple did not respond to a request for comment from Business Insider and declined to comment to Nikkei.
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