Apple is reportedly cutting production of AirPods by around 25% to 30% this year as intensifying competition dents sales of the U.S. tech giant’s fastest-growing product line, as reported by Nikkei Asia.
Apple now expects to make between 75 million and 85 million units for 2021, compared with a previous production forecast of 110 million units.
“The most significant order reduction is for the second quarter toward the start of the third quarter,” said one of the people familiar with the matter. “The levels of inventory [in warehouses] and in-store stocks of AirPods are currently high … and demand is not as strong as expected.”
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.
