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Apple scales back iPhone production, ramps up iPad

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Apple scales back iPhone production, ramps up iPad
Apple may already be starting to scale back production of iPhones in anticipation of its next device, which is expected to debut in the fall. According to Shaw Wu, an analyst with Sterne Agee, Apple has reduced iPhone orders by an estimated 20% to 25% from the March quarter, which saw 35.1 million units ship.

“From our understanding, the reason for the reduction is not demand related but rather due to the upcoming 6th generation iPhone refresh likely in the September-October timeframe,” Wu explained. “It appears that AAPL is opting to be conservative with its suppliers to factor in a potential 2-quarter pause ahead of the refresh and also to manage inventory. We believe this helps explain why its June quarter guidance was somewhat more conservative.”

While the new iPad was initially plagued with production delays due to its retina display, causing serious constraints in the supply chain, Wu also noted that since there is now a second supplier, he expects shipment of the iPad to rise from 14 million to 15 million units. 

source: BGR

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