Apple may cut 40% iPhone production in Q4
Craig Berger, who is a FBR Capital Markets analyst, says in his research report that Apple to significantly cut back its iPhone production by 40 percent in Q4.
The company has already predicted to cut its production output by 10 per cent after selling almost seven million phones in the third quarter, however, the current report indicates a much larger figure.
It is unknown how much inventory Apple builds after the successful launch of the iPhone 3G that got far better response than the original iPhone.
iPhone 3G did a good business in different countries of the world ,though there were networking and software issues at the time of its launch.
According to TG Daily notes, Apple has over-produced in the third quarter at the time when iPhone 3G was released, as Apple wanted to stock global supply channels and this reduction can be a way to balance inventory.
But considering the limited availability of the handset at the time of launch and the possible strong demand over Christmas, this doesn’t seem the case.
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