Apple Slashes iPhone Air Output, Boosts Production Of Base, Pro iPhone 17 Models, Nikkei Reports
Building on the "Are We In An iPhone Supercycle?" note we published on Tuesday, a new report from Nikkei Asia says Apple has sharply cut production of the iPhone Air due to soft demand while boosting orders for other iPhone 17 models, particularly the base and Pro versions.
Nikkei cited multiple sources with access to Apple's supply chain and revealed on Wednesday:
The adjustment to production plans reflects both the lukewarm reception of the iPhone Air in markets outside China and unexpectedly strong demand for the iPhone 17 and iPhone 17 Pro models. As a result, Apple is maintaining its production forecast of 85 million to 90 million units for the lineup as a whole.
Another source said the iPhone Air was initially expected to account for 10% to 15% of total production, yet orders for the "lite" version have been reduced to "near end of production levels." Apple has reportedly slashed component and module orders, with November production volumes expected to side below 10% of September's levels. The model's poor demand ex-China contrasts with its solid launch there last week.
The report continued:
The model is seen as strategically paving the way for the first foldable iPhone, expected to debut in 2026, according to three people with knowledge of the matter. Nikkei Asia earlier reported that Apple has high hopes for the launch of such a phone next year.
While the iPhone Air has been a disappointment, demand for the iPhone 17 and iPhone 17 Pro has exceeded expectations. Two sources said this robust demand prompted Apple to increase production orders for the baseline iPhone 17 by about 5 million units and to boost orders for the iPhone 17 Pro.
In the U.S. this week, the average wait time for an iPhone 17 with 256 gigabytes of storage is about two to three weeks, and about one to two weeks for the iPhone 17 Pro, while there is no wait time for the lite version.
Dropped my iPhone Air… glass is fine but dented the titanium! pic.twitter.com/S76IR8tnF4
— Max Weinbach (@MaxWinebach) October 21, 2025
On Tuesday, a team of Goldman analysts led by Michael Ng told clients that iPhone 17 demand is tracking ahead of the iPhone 16 series, supported by longer lead times, higher production builds, and positive carrier feedback.
Important:
This prompted Ng to ask clients: "Are we in an iPhone supercycle?"
For more details on iPhone demand, ZeroHedge Pro subscribers can read the full note here.
Tyler Durden
Wed, 10/22/2025 – 09:40