Apple Cutting Q4 iPhone Production?

AlleyInsider reports on a new analyst report from Friedman Billings Ramsey which claims that Apple's iPhone production could fall "more than 40%" in the 4th Quarter of 2008. AlleyInsider points out this may simply represent a surplus of iPhone production from Q3 2008 and the decrease in Q4 is to adjust inventory to match demand.

Another contributing factor is believed to be the recent economic downturn:

That the firm's iPhone production plans are being revised lower suggests that the global macroecomomic weakness is impacting even high-end consumers, those that are more likely to buy Apple's expensive gadgets, and that no market segment will be spared in this global downturn. This is a negative signal for global demand, in our view.

The analyst bases his findings on "recent checks" on the chip industry which supplies parts for Apple's iPhone. The news comes shortly after Apple reported record iPhone earnings capturing 2.3% of the mobile phone market.

Related Forum: iPhone

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