Apple: Reports of Material iPhone Manufacturing Cuts

Market-moving story making the rounds that Apple is cutting Asian manufacturing order for iPhone:

Apple has lowered its projected shipments of iPhones from two million units to around 1-1.2 million units for the second fiscal quarter, which will end March 2008, the Chinese-language Economic Daily News (EDN) quoted sources at Apple’s handset component suppliers in Taiwan as indicating.

Sales of iPhones in Europe have been lower than expected, pushing Apple to slash its shipment projection for the second quarter, the EDN quoted the sources as saying. Apple shipped more than 2.3 million iPhones in the first fiscal quarter, bringing total shipments of iPhones to close to four million units since its launch, the paper added.


  1. Alan Graham says:

    If it is true I doubt it has anything to do with current orders…Apple is expanding quickly into foreign markets…and wait until the iPhone starts breaking into Asian markets.
    I think if this is true the more likely explanation is that Apple, who never carries more than one to two months inventory of product, is ramping for a new iPhone. It makes sense that they are preparing to slow orders of current components in preparation of a new model…so not to be stuck with a gut in the market.

  2. hmm I wouldn’t count apple out. Could be a phase in of Iphone 3g components as opposed to the semi cruddy 2g phone they have now.

  3. I’m not too concerned: if true, I believe this refers to the current model. I’m sure a newer one is just around the corner. But now that Apple has established the base price in people’s minds as $399, I’ll bet the newer model (with 3G, natch, and hopefully some other compelling features not present in the original) will be at this price with the current one dropping $50.