Apple’s latest iPhone Air, known for its ultra-thin design, has not met the sales expectations set by the company. Analysts have observed that the delivery times have not been delayed since the first day of its release, indicating that Apple’s supply of the device has been able to meet the demand.
According to Nikkei Asia, Apple has reduced production orders for the iPhone Air to levels usually seen towards the end of a product’s lifecycle:
Multiple suppliers have been instructed by Apple to significantly decrease component and electronics module orders for the iPhone Air, as reported by two individuals familiar with the situation. One of the component supplier managers mentioned, “The total forecast has almost entered end-of-production mode, dropping significantly compared to earlier projections, to only about 10% fewer orders compared with September starting in November.”
Lauly Li and Cheng Ting-Fang, Nikkei Asia
While high demand for an Apple product typically leads to extended delivery times due to stock depletion, the iPhone Air remains readily available for both online orders and in-store purchases. This contrasts with the usual trend for new iPhone models, where delivery times quickly slip after preorders open.
Several analysts have indicated a soft demand for the iPhone Air. Mizuho Securities in Japan suggested that Apple plans to reduce production of the thinnest iPhone ever due to lower-than-expected sales. Morgan Stanley predicted production increases for the iPhone 17 models but omitted the iPhone Air. This trend of lagging demand for the Air while other iPhone models perform well is consistent across the industry.
Counterpoint Research highlighted strong sales for the base model iPhone 17 and the flagship iPhone 17 Pro Max, with no mention of the iPhone Air. However, analysts from Wedbush believe that the iPhone Air may be performing better in China, where regulatory issues delayed its launch.
Despite the disappointing sales of the iPhone Air, overall production for the new iPhone lineup remains strong. Demand for other iPhone 17 models has been unexpectedly robust, compensating for the weak performance of the Air.
Counterpoint Research noted that the iPhone 17 Pro Max has been particularly successful in the early sales in the US, thanks to promotions by major carriers. In China, demand for the base iPhone 17 has reportedly been double that of the previous model, driven by improved specs and promotional offers.
Apple’s strategy of enhancing base models while introducing appealing features in high-end devices seems to be striking a balance. However, the lukewarm reception of the iPhone Air reflects the challenge of finding the right balance between thin design and value for consumers.
