Analyst: Apple slashes Q4 iPhone production

“Apple has cut its Q4 iPhone production plans significantly more than originally estimated, according to Friedman Billings Ramsey analyst Craig Berger,” Dan Frommer reports for Silicon Alley Insider.

“Instead of a 10% sequential production drop in Q4, Berger’s ‘recent checks’ suggest Apple’s iPhone production could fall “more than 40%” from its Q3 levels. Berger thinks a similar cut was made for Q1, but notes that there’s still plenty of time to change that,” Frommer reports.

“What does this mean? A significant production cut isn’t necessarily a direct reflection of significantly slowing iPhone demand,” Frommer reports.

Full article here.

25 Comments

  1. You never know…could be a new model (awful sudden though), or just a sign of the times. I don’t think demand is going anywhere though, unless you think everyone who wanted an iPhone has already got one. But I don’t think that’s true, as there are buyers like myself who are waiting for a better deal before upgrading from Edge to 3G.

  2. Obanalyst skews AAPL numbers yet again.

    The economy can’t return until the Bamacrats get full power.

    Analysts are just like journalists…full of half truths targeting their best interests.

  3. Could be preparing for an iPhone Nano.

    Also, it pays to never go cheap on things you use everyday. Save money on the things you use only periodically.

    iPhones don’t seem to depreciate as much as other phones. I wish someone would do a study on the resale value of cheap phones and smart phones to see how the iPhone fares…

  4. Is it so awfully sudden for a product refresh at this time, though? The best way to stir up the ditherers and the undecideds at this peak sales season is to offer an enhanced model. Even more for the same money or even for less. It doesn’t have to be a new model, just a few juicy enhancements and more memory for the same buck. That would do Christmas sales a lot of good. A whole lot of good.
    From a logistics POV I don’t see it as a problem as there needn’t be any major re-tooling changes like a new form factor. On the other hand, they could just be introducing a new model that was already in the works.
    Let’s hope so. the analysts are so Anti-Apple that a good quarter would work wonders.

  5. I was in an Apple store the other day and noticed they had ‘iPhone gift cards’. Since they have in-store activation, I thought maybe it’s possible that they expect to sell more of the gift cards and not the iPhone itself going into the Holidays. If that’s the case, surely they would lower production now, and fire it back up closer to the end of the year in anticipation of all those gift card holders coming in to get their iPhones around the turn of the year. Don’t know if that makes sense, just a thought I had.

  6. Time For the 32 GIG iPhone. I can’t Wait. They will drop the 8 gig and discontinue it, and bring the 16 gig to 199, and 32 to 299. I garauntee it. Well, i personally think they won’t do this until after christmas, but i hope they do it now, cause i have been waiting to upgrade my iPhone to 3G. Especially since Santa Cruz just got 3G. 32Gig here i come.!

  7. I spoke with my trader at FBR and he told me the analyst saw 10-15% cuts last week, but 40% cuts this week. Who knows? The problem may be that the almost 7 mln iphone number last quarter may have included up to 2 mln units shipped into inventory at carriers (which is when apple recognizes revenue) which is now getting worked off but required a production cut from Apple.

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