Over the previous few weeks, we have seen a gradual stream of reviews suggesting that Apple’s ultra-thin iPhone Air hasn’t precisely been flying off the cabinets. Simply final week, for instance, a report emerged claiming that Apple was planning to cut back iPhone Air manufacturing by as a lot as 1 million items resulting from decrease than anticipated demand. Consequently, a story was beginning to construct that Apple’s iPhone Air, regardless of the hype we noticed previous its launch, may go down as a disappointment, much like Apple’s beloved but commercially unsuccessful iPhone mini.
A more moderen report, nonetheless, claims that the iPhone Air might not be a flop in any respect. A brand new investor notice from TD Cowen, dropped at mild by AppleInsider, relays that Apple by no means made a change to its iPhone Air manufacturing schedule. TD Cowen provides that iPhone Air manufacturing for the 2025 vacation quarter stays unchanged at 7 million items.
It is value noting that analyzing the vibrancy of iPhone gross sales by manufacturing numbers can typically be deceptive. For instance, Apple will generally cut back manufacturing as a result of preliminary gross sales estimates had been overly optimistic, even when complete gross sales stay fairly sturdy. In different situations, Apple may increase manufacturing when preliminary gross sales estimates had been too low. In each eventualities, Apple’s actions typically say extra concerning the accuracy of its preliminary estimates than concerning the precise power of general gross sales. So, whereas manufacturing boosts or cutbacks might be informative, they sometimes do not paint an entire image.
We could also be within the midst of an iPhone supercycle
The recognition of the iPhone Air apart, one factor that’s turning into more and more clear is that Apple’s iPhone 17 lineup is spearheading a major uptick in iPhone gross sales. For years, analysts have anticipated an iPhone supercycle, and it seems that we’re lastly within the midst of it.
Demand for the iPhone 17 was immense proper from the beginning. Not solely had been pre-orders larger than in years previous, however demand has stayed sturdy within the weeks following its worldwide launch. One issue which helps increase demand is the truth that some analysts consider there are greater than 315 million iPhone customers who have not upgraded their machine in not less than 4 years. This, coupled with the truth that the iPhone 17 lineup arguably represents the strongest iPhone replace we have seen in years, has seemingly created an ideal storm for Apple.
Up to now, new knowledge from Counterpoint Analysis reveals that the iPhone 17, in its first few weeks of availability, outpaced early iPhone 16 gross sales by a whopping 14%. That is a dramatic enhance provided that iPhone gross sales have not fluctuated wildly in the previous couple of years. Amid the obvious surge in iPhone gross sales, Apple’s share value has just lately skyrocketed to new highs. Shares of Apple on Monday reached $267, marking a brand new intraday excessive. Since August 5, Apple shares have shot up by 31%. We’ll be capable to get a greater sense of how sturdy iPhone gross sales are when the corporate releases its earnings report for the latest quarter later this week.
Over the previous few weeks, we have seen a gradual stream of reviews suggesting that Apple’s ultra-thin iPhone Air hasn’t precisely been flying off the cabinets. Simply final week, for instance, a report emerged claiming that Apple was planning to cut back iPhone Air manufacturing by as a lot as 1 million items resulting from decrease than anticipated demand. Consequently, a story was beginning to construct that Apple’s iPhone Air, regardless of the hype we noticed previous its launch, may go down as a disappointment, much like Apple’s beloved but commercially unsuccessful iPhone mini.
A more moderen report, nonetheless, claims that the iPhone Air might not be a flop in any respect. A brand new investor notice from TD Cowen, dropped at mild by AppleInsider, relays that Apple by no means made a change to its iPhone Air manufacturing schedule. TD Cowen provides that iPhone Air manufacturing for the 2025 vacation quarter stays unchanged at 7 million items.
It is value noting that analyzing the vibrancy of iPhone gross sales by manufacturing numbers can typically be deceptive. For instance, Apple will generally cut back manufacturing as a result of preliminary gross sales estimates had been overly optimistic, even when complete gross sales stay fairly sturdy. In different situations, Apple may increase manufacturing when preliminary gross sales estimates had been too low. In each eventualities, Apple’s actions typically say extra concerning the accuracy of its preliminary estimates than concerning the precise power of general gross sales. So, whereas manufacturing boosts or cutbacks might be informative, they sometimes do not paint an entire image.
We could also be within the midst of an iPhone supercycle
The recognition of the iPhone Air apart, one factor that’s turning into more and more clear is that Apple’s iPhone 17 lineup is spearheading a major uptick in iPhone gross sales. For years, analysts have anticipated an iPhone supercycle, and it seems that we’re lastly within the midst of it.
Demand for the iPhone 17 was immense proper from the beginning. Not solely had been pre-orders larger than in years previous, however demand has stayed sturdy within the weeks following its worldwide launch. One issue which helps increase demand is the truth that some analysts consider there are greater than 315 million iPhone customers who have not upgraded their machine in not less than 4 years. This, coupled with the truth that the iPhone 17 lineup arguably represents the strongest iPhone replace we have seen in years, has seemingly created an ideal storm for Apple.
Up to now, new knowledge from Counterpoint Analysis reveals that the iPhone 17, in its first few weeks of availability, outpaced early iPhone 16 gross sales by a whopping 14%. That is a dramatic enhance provided that iPhone gross sales have not fluctuated wildly in the previous couple of years. Amid the obvious surge in iPhone gross sales, Apple’s share value has just lately skyrocketed to new highs. Shares of Apple on Monday reached $267, marking a brand new intraday excessive. Since August 5, Apple shares have shot up by 31%. We’ll be capable to get a greater sense of how sturdy iPhone gross sales are when the corporate releases its earnings report for the latest quarter later this week.
