Apple to Slash iPhone Production?

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Posted November 3, 2008 at 12:58pm by iClarified · 6515 views

Apple will cut its calendar Q4 iPhone production plans significantly more than originally estimated, according to a report by Friedman Billings Ramsey analyst Craig Berger.

AlleyInsider reports that Berger's "recent checks" suggest Apple's iPhone production could fall "more than 40%" from its Q3 levels. This does not necessarily mean a decrease in iPhone demand, rather it could just be due to a production surplus.

Berger notes that the iPhone cuts are "a negative global demand" signal:

That the firm's iPhone production plans are being revised lower suggests that the global macroecomomic weakness is impacting even high-end consumers, those that are more likely to buy Apple's expensive gadgets, and that no market segment will be spared in this global downturn. This is a negative signal for global demand, in our view.

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chris - November 4, 2008 at 12:57pm

analysts are not insiders. don't put much stock into what analysts say. do your own due diligence.

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rick - November 4, 2008 at 10:05am

if they can make the iphone to send mms messages , thats a big plus for the iphone industry, also not everybody want to be with high priced att or aother iphone suppliers, they should just cut the contract and start selling the iphones unlocked so everybody can buy one and use it in their current contract or without any contract.

S_Warior - November 4, 2008 at 6:16am

Apple's problems are a good sign for customers 'cause they will have to work harder and implement both hardware features (a better camera) and software features (cut&paste, real bluetooth peer-to-peer file exchange, etc)

Awayze1201 - November 3, 2008 at 3:45pm

The iPhone's main selling point is the easiness of syncing with iTunes and the UI, otherwise all other phones beat it hands down.

Ramses - November 3, 2008 at 1:56pm

yep, end of hype. it is easier to cease production than add essential functions that every other cell phone has

pete - November 3, 2008 at 1:39pm

nothing to do with apple iphone And consumer demand for the phone to achieve basic functions Like copy and paste forward text etc If the iphone3g had those features apple may sell more Numpties