Weak demand for MacBook, Apple Watch, AirPods may have caused order cuts

Apple CEO Tim Cook at a Foxconn factory.

Apple shares had risen on the news that production in Foxconn's major iPhone plant in Zhengzhou is back to 90% capacity. However, a new report about Apple cutting orders has seen the company fall 3.55% on NASDAQ.

According to Nikkei Asia, the supply chain in China was struggling as the local authorities relaxed their severe COVID lockdowns and allowed factories to reopen. Then came the reduction in orders.

"Apple has alerted us to lower orders for almost all product lines actually since the quarter ending December," a source said to be an Apple supplier manager, told the publication, "partly because the demand is not that strong."

"The supply chain in China is still trying to cope with the latest abrupt policy turns," continued the source, "which brought a shortage of laborers because of the sharp COVID surges."

Reportedly, Apple has specifically cut its orders for AirPods, Apple Watch, and MacBooks, for the first quarter. It's not know by how much the orders have been reduced.

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