Apple Cuts iPhone, iPod Touch Production

Are Apple sales in trouble? Two research analysts have reported in recent days that Apple is aggressively cutting back production on iPods and iPhones, while increasing production on Mac computers.

Craig Berger, an analyst with FBR Research, told clients in a research note that week that Apple has reduced orders for iPhones and iPods for the second duration in two months. Berger concludes that Apple is experiencing weak sell-through in the fourth calendar quarter of 2007 or in the early going that year.

“For both iPods and iPhones, we believe Apple was previously targeting a roughly 50 percent quarter-over-quarter decline for first quarter units, whereas we now think the firm is targeting a 60 percent quarter-over-quarter unit decline for first-quarter units,” he wrote.

iPod Touch Weakness

It seems that the iPod Touch may have seen the weakest sales. Berger reported production orders for the Touch have fallen the most. The device may suffer from being less than an

iPhone, since it has no phone capabilities but is substantially more expensive than Apple’s music-playing iPhones. The touch relies on Wi-Fi for connectivity, so users who aren’t in range of a Wi-Fi connection simply can’t get online.

Berger plus said MacBook chip orders in the first quarter look to be down 50 percent compared with the fourth quarter of 2007. But iMac orders are up 35 percent compared with previous checks.

Apple just announced new, higher-capacity versions of both the iPhone and iPod Touch, so the production cutbacks may have been in preparation for the new models. Another possibility, more remote, is that Apple is scaling down production of the current iPhone in preparation for a 3G version. AT&T, Apple’s exclusive carrier for the iPhone in the U.S., announced it is building out its 3G network to more locations around the country.

Mac Production Up

Meanwhile, Banc of America…

Original post by Top Tech News

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