### Summary:
– Apple is reducing production of the iPhone Air due to weak market demand, particularly outside China.
– In contrast, demand for the other models in the iPhone 17 series remains robust, prompting an increase in their production orders.
– The iPhone Air’s performance has raised questions about Apple’s market expectations and its strategic direction.
—
### Apple Adjusts iPhone Air Production in Response to Market Demand
In a significant shift for Apple’s iPhone line, the company is revising its production strategy for the newly released iPhone Air, which emphasizes ultra-thin design. Despite being marketed as a groundbreaking product, the iPhone Air is encountering criticism due to disappointing demand in global markets. Recent reports indicate that this lackluster performance has led Apple to scale back its production plans.
The tech giant is reportedly reducing iPhone Air production orders while simultaneously increasing orders for other models in the iPhone 17 series. Although the iPhone Air just launched pre-orders in mainland China last week, it has been observed that production orders have dropped to levels close to a complete production halt in other markets, reflecting a clear lack of consumer interest.
### Market Response: A Closer Look
Consumer electronics observers have expressed skepticism regarding the iPhone Air’s actual demand, particularly noting the delivery timelines for different models. For example, in the U.S., while the flagship iPhone 17 model requires a delivery wait of 2-3 weeks and the Pro series takes around 1-2 weeks, the iPhone Air is readily available for immediate pickup.
Interestingly, demand for the iPhone Air appears somewhat stronger in mainland China compared to Western markets. Within just two hours of pre-sale opening, various color and storage options were quickly sold out on Apple’s official platform and Tmall.
While delivery times are not definitive indicators of overall demand, the data suggests that Apple may have overestimated the market response to the iPhone Air. Previous predictions from Morgan Stanley indicated increasing production for the other iPhone 17 models, omitting any mention of the iPhone Air. Similarly, Counterpoint Research has highlighted robust demand for both the basic iPhone 17 and the iPhone 17 Pro Max, again excluding the iPhone Air from positive projections.
### Positive Outlook for Other Models
Despite the challenges faced by the iPhone Air, there is encouraging news for Apple overall. The strong demand for the other three new models is enabling the company to maintain its production forecast of 85 million to 90 million units for the entire series. Reports suggest that Apple has raised its orders for the basic iPhone 17 by approximately 5 million units, in addition to increasing orders for the Pro series.
From the perspective of the consumer electronics supply chain, the launch of the new iPhone series this year is met with relief. An executive from a key parts supplier remarked that Apple is currently one of the few manufacturers maintaining stable production expectations amid a broader decline in shipments facing competitors. Another supply chain manager confirmed that the overall production orders for the iPhone 17 are “stable and on schedule,” providing reassurance in a fluctuating global market.
### Strategic Implications
The iPhone Air is not just another model; it represents a strategic move for Apple as it prepares to introduce its first foldable-screen iPhone next year. Originally, the iPhone Air was expected to constitute approximately 10%-15% of this year’s overall iPhone production. However, with the recent directive to suppliers to drastically cut back on component orders for the iPhone Air, projections indicate that by November, production levels may be less than 10% of the figures seen in September.
As Apple navigates these turbulent market conditions, maintaining a balance between innovation and market demand will be crucial for the brand’s continued success.
