%Apple ($AAPL) is cutting production of its 2022 iPhone SE by as many as three million units, or about 20%, for the upcoming second quarter of the year.
The decision is said to be the result of lower than anticipated demand for the $429 U.S. iPhone SE, which is the lowest priced among the company’s line of smartphones.
Media reports cite the war in Ukraine and rising global inflation as two of the reasons for the drop in demand for new smartphones.
The new iPhone SE, which was announced at Apple’s “Peek Performance” event on March 8, has been available to purchase for less than a month.
The 2022 version of the %iPhoneSE is the successor to the 2020 model of the budget phone, and comes outfitted with the iPhone 13’s A15 Bionic processor and is capable of working on 5G wireless networks.