Why This Apple Analyst Has Lowered The Estimate For 2022 iPhone SE Shipments

Long-time Apple Inc. (NASDAQ: AAPL) analyst Ming-Chi Kuo has cut his shipment estimates for the new iPhone SE, citing lower than expected demand.

What Happened: Kuo said he is lowering his forecast for Apple’s iPhone shipments this year to a range of 15 million to 20 million units from the earlier range of 25 to 30 million units, citing the delivery status "in stock" of Apple as a proof.

Kuo also added the phased lockdown ordered on Monday by authorities in the Chinese financial hub of Shanghai has not impacted the production of the iPhone SE.

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Why It Matters: The much-awaited budget model iPhone SE — launched by Apple earlier this month — is widely expected to give a big volume push to the company's flagship product.

The third-generation iPhone SE may help the Tim Cook-led company gain market share in important markets like China and India due to its improved chipset and 5G connectivity, according to Counterpoint Research.

Kuo noted earlier this month that the reduction in orders from Apple to a low-end Chinese manufacturer was a signal that the mobile phone industry is “facing structural challenges.”

Apple has said it is cutting orders for all iPhones for the first half of 2022 by nearly 20% compared to its plans in December last year due to lower than expected demand.

Price Action: Apple shares closed almost 0.4% higher in Friday’s regular trading session at $174.72 and further rose about 0.2% in the after-hours session to $175.00, according to data from Benzinga Pro.

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