Apple to cut AirPods production due to decreasing sales: Report

"The most significant order reduction is for the second quarter toward the start of the third quarter," one of the people familiar with the matter was quoted as saying.

San Francisco: Apple is reportedly cutting production of its AirPods by around 25 per cent to 40 per cent due to a decrease in sales, media reports said.

The tech giant, which had initially planned to aim for 110 million units, now plans to produce only 75 to 85 million units of AirPods for the remainder of this year, MacRumors, citing Nikkei Asia, reported on Tuesday.

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“The most significant order reduction is for the second quarter toward the start of the third quarter,” one of the people familiar with the matter was quoted as saying.

The report does not specify which AirPods specifically will see a production cut.

Apple’s current AirPods lineup includes the AirPods Pro, the second-generation standard AirPods with wireless charging, and the $550 over-ear AirPods Max.

AirPods and AirPods Pro are expected to be upgraded this year, which Apple hopes will “stimulate sales,” according to the report.

The company is rumoured to be working on third-generation AirPods with a design similar to the AirPods Pro but lacks “Pro” features such as Active Noise Cancelation.A

Apple analyst Ming-Chi Kuo said that production of the new AirPods will begin in the third quarter of the year.