Apple cut production for Airpods: Reason Why?

 Apple AirPods are among the top-selling products in the iPhone maker’s kitty, but its sales may be losing steam. And that is why Apple has reportedly asked its manufacturing lines to reduce the production of AirPods wireless earphones by 25 to 30 per cent. Apple is facing huge competition in the wireless earphones market in the US and even though the iPhone maker is in the leading position, sales of the AirPods fell short of Apple’s expectations. Apple got AirPods manufactured more than it is selling, leading to a huge unsold inventory right now.

According to Nikkei Asia, Apple is now expecting to manufacture AirPods between 75 million and 85 million units for 2021. It was previously hopeful about sales of more units, which is why its previous forecast suggested 110 million units. Apple’s plan to downscale the production of AirPods indicates that the demand for the premium wireless earphones that has become an integral part of Apple’s ecosystem is weakening, despite the double-digit growth in terms of percentages ever since AirPods were launched in 2016.

The report has said, citing people familiar with the development, that the reduction in orders for AirPods will target the second quarter leading to the beginning of the third quarter. "The levels of inventory [in warehouses] and in-store stocks of AirPods are currently high ... and demand is not as strong as expected,” said the report. Apple reportedly asked its manufacturing partners to make around 80 million to 90 million AirPods units last year, a big stock of which is unsold and has become inventory. Now, Apple may be hoping the upcoming AirPods model, possibly the AirPods 3, will give momentum to the sales of its wireless earphones.