Apple said cutting iPhone, AirPods production over Ukraine war, inflation
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Apple (NASDAQ:AAPL) is reportedly cutting production of its iPhone SE and AirPods due to the Russian invasion of Ukraine and waning consumer confidence concerning inflation, according to news outlet Nikkei Asia.
Nikkei reported that Apple (AAPL) is cutting 20% of its planned iPhone SE output for the next quarter, despite the fact that the phone was announced only three weeks ago. That 20% cut equates to lower production levels of roughly 2 million to 3 million units, Nikkei added.
Apple (AAPL) also reportedly reduced its orders for AirPods by more than 10 million units for all of 2022, Nikkei Asia reported.
Apple (AAPL) shares slipped less than 1%, to $174.12 in early trading, Monday. 
The tech giant is coming off a weekend in which it became the first streaming service to win the Oscar for Best Picture for CODA.
Cupertino, California-based Apple (AAPL) did not immediately respond to a request for comment from Seeking Alpha.
In addition, Nikkei reported that Apple (AAPL) has asked suppliers to make a "couple million" fewer units of its iPhone 13 devices than it previously planned, but noted that was due to "seasonal demand."
Apple (AAPL) is reportedly working on a subscription plan for iPhones and other hardware, a move that Morgan Stanley analyst Katy Huberty said could "drive meaningful upside" to Apple's current share price.
Huberty noted that if Apple (AAPL) did make this shift, it would result in Apple (AAPL) users going from spending roughly $1 per day for hardware and services to a "much higher" amount. Huberty said she was "confident" that the average Apple (AAPL) user would willingly pay more than approximately $30 a month "for access to their Apple devices and services."
In addition, Huberty said that any subscription offering would likely have multiple pricing tiers, similar to the company's Apple One services bundle that brings together its Apple TV+, Apple Music, Apple Fitness and other services into a monthly fee. Huberty said the introduction of pricing tiers, as opposed to one flat subscription rate, "would allow Apple to capture each userâs greatest willingness to pay based upon their consumption of Apple products and services."
Huberty also said that the subscription offering would reduce the hardware replacement cycle, get more customers used to a direct-to-consumer model and potentially increase the usage of Apple's services.
Last week, Wedbush Securities said Apple (AAPL) was seeing "stellar" iPhone 13 demand, while adding that the supply chain is also showing improvements.