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According to a new Nikkei Asia report, Apple is cutting production of its hugely popular AirPods by about 25 to 30 percent as sales decline due to increased competition in the wireless headphone industry.
According to the latest report, citing sources familiar with Apple's production plans, the tech giant now plans to produce only about 75 to 85 million units of AirPods for the rest of this year, down from the original plan of 110 million units. The report states:
Which AirPods are we talking about exactly?
Apple now expects to produce between 75 and 85 million units in 2021, compared to a previous production forecast of 110 million units. "The most significant order reduction is for the second quarter at the beginning of the third quarter," said a person familiar with the matter. "Inventories [in warehouses] and in-store inventories of AirPods are currently high. However, demand is not as strong as expected.
The report does not specify which version will see a production cut. Apple's current range includes the AirPods Pro, the standard second-generation earbuds with a wireless case, and the 600 euro over-ear model.
Update to be released this year
The AirPods and AirPods Pro are expected to receive an upgrade this year, which Apple hopes will "drive sales," according to the report. Towards the end of 2020, Apple updated its entire product lineup, including new iPhones, iPads, Macs, Apple Watches, and more. The AirPods, which have dominated the wireless earphone market since their debut, were one of those Apple products that didn't receive an upgrade toward the end of the year. Currently, Apple is rumored to be working on the third generation of AirPods, which will have a similar design to the AirPods Pro, but will lack "Pro" features like active noise cancellation. Apple analyst Ming-Chi Kuo suggested a third-quarter unveiling. (Photo by Masarik / Bigstockphoto)
