Updated 22 May, 2013, 11:23 am IST
Apple may be trimming iPhone 4S production to accommodate next-gen handset
| by Aaron Almeida |
An unquestioned fact among Apple enthusiasts is that they should avoid purchasing a current generation iOS device six months after it has been announced, all because by this time the next version of the model is almost ready to make an entry. As of now, there is a lot of talk circulating around the Internet as to when the next iPhone will be launched with a lot of rumours pointing to a September/ October release date.
It seems that these rumours may be true, as a report by CNET claims that Apple is reducing the production of their current iPhones by 20 to 25 percent. As per the report, “Apple may already be prepping for the production of its next-generation iPhone. The company is significantly cutting back on the production of the current iPhones, according to supplier checks by Sterne Agee analyst Shaw Wu.” The analyst goes on to state that the number of iPhones being produced has been reduced to 20 - 25 percent on a quarter-over-quarter basis. The report notes,“The reduction suggests Apple is being conservative and giving suppliers a two-quarter pause ahead of the introduction of a new iPhone, which Wu believes will come around September or October. The pause will allow suppliers to better manage inventory and prepare for the new model. Apple had similarly reduced the production of iPhone 4 devices ahead of the iPhone 4S.”
Apple maybe reducing production of the current iPhone by up to 25 percent
Apart from the news regarding the cutting down of current generation iPhones, the analyst also states that since the new iPad is faring well in markets, he expects the brand to increase the amount of units from 14 million to 15 million. Speaking on this Wu said, “We believe this will enable Apple to be better equipped to meet strong demand and deliver upside relative to consensus expectations.” He also added that initially Apple had faced some production issues, due to the shortage of Retina Display panels for the iPad. But this issue appears to having been resolved.
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