Monday, November 3, 2008

Apple to Slash iPhone Production?

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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