Apple Inc. (NASDAQ: AAPL) is implementing significant reductions in iPhone Air production orders while simultaneously increasing those for the flagship iPhone 17 models, driven by robust demand as reported this Wednesday.
Subdued Demand for iPhone Air Beyond China
Production orders for the iPhone Air have plummeted to near “end of production” levels, despite its recent launch in China. According to a report from Nikkei Asia, this downturn is attributed to diminished demand in markets outside of China.
The iPhone Air was initially projected to constitute 10–15% of new iPhone production for the year; however, orders are now anticipated to decrease to below 10% of the September volume from November onward.
This model is perceived as a strategic precursor to the forthcoming foldable iPhone, which is set to be unveiled in 2026, as indicated by the report.
In contrast, demand for the iPhone 17 and iPhone 17 Pro has significantly exceeded projections, prompting Apple to amplify production orders for these models. Despite ongoing trade tensions and a languid smartphone market, Apple remains steadfast in its production forecast of 85–90 million units for the iPhone 17.
Apple has yet to respond to inquiries from Benzinga regarding these changes.
Surge in iPhone 17 Sales Across the U.S. and China
During the initial ten days post-launch, the iPhone 17 models outperformed their predecessors by 14% in both the U.S. and Chinese markets, as reported by Counterpoint Research.
With added enhancements, including a more potent chip, superior display quality, increased storage capacity, and an upgraded front-facing camera—all maintained at the same price point as the iPhone 16—the flagship series has sparked heightened demand in China.
This proliferation has led to an overall increase in sell-out rates by nearly 33%, with consumer interest in the base model surging nearly twofold compared to the iPhone 16.
Analysts Optimistic About Demand Trajectory
Wedbush analyst Dan Ives links the robust global demand for iPhones and potential improvements in the Chinese market as pivotal factors for Apple’s future growth.
Loop Capital analyst Ananda Baruah, who has recently upgraded Apple stock from Hold to Buy, foresees the onset of a multi-year expansion cycle for iPhone sales, predicting demand to escalate through 2027.
According to Benzinga’s Proprietary Edge Rankings, Apple enjoys a momentum rating of 66.87% and a quality rating of 76.09%.
Source link: Benzinga.com.
