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Apple has reduced planned production of itswireless earphones by up to 25-35 million units this year, or approximately 25 to 30%, as competition from Asian rivals intensifies, according to report published Wednesday by the Nikkei Asian Review.
Apple now plans to make 75-85 million AirPods, compared with an earlier number of 110 million units, the report says citing sources briefed with the matter. The forecast reduction suggest demand for AirPods have been slowing after clocking double-digit growth rates for years.
The report comes as Apple reported a stellar set of quarterly earnings that saw year-on-year revenue grow by 54% to $89.6 billion. The company’s laptops and desktops clocked their best sales quarter ever during the the second fiscal quarter. That amounted to $9.1 billion in sales, higher than the iPad, Apple Watch or AirPods.
Apple could not immediately be reached for comment.