U.S. consumer electronics giant Apple (AAPL) is reportedly sharply scaling back production orders for the iPhone Air, its newly released ultra-thin and lightweight device that marked its first major smartphone redesign since 2017.
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The adjustment is moving orders closer to “end of production” levels, Nikkei Asia reported, citing multiple electronics suppliers to the company. In contrast, the tech giant is ramping up production orders for the equally new iPhone 17 models.
In particular, the company is boosting orders for the standard iPhone 17 by about 5 million units, according to the outlet.
Is iPhone Air Doing Well Outside China?
The development comes as early strong demand for the iPhone 17 lineup has helped to propel Apple — which has been lagging behind its peers due to the slower rollout of its AI features — closer to a $4 trillion market valuation. Its shares even hit an all-time high on Monday, as investors cheered the robust demand.
However, the drastic reduction in production orders for the iPhone Air comes less than a week after the model finally launched in China — Apple’s second-biggest market after the U.S. The delay in launching in China is due to authorities’ concerns about the smart device’s e-SIM technology.
The ultra-thin smartphone sold out within minutes of its launch, defying concerns about tariffs and tension from the U.S.-China trade war. However, the demand for iPhone Air outside of China has been reportedly very soft.
Will Apple Stock Reach $700 Again?
Apple’s shares are currently trading about 2% lower at $258.59 per share, as of 12:16 p.m. EDT on Wednesday. Since the start of the year, AAPL stock has risen by less than 4%, although it soared over 22% in the last three months.
Across Wall Street, the tech giant’s stock currently holds a Moderate Buy consensus rating from analysts, TipRanks data shows. This is based on 20 Buys, 12 Holds, and three Sell recommendations issued by 35 analysts over the past three months.
Moreover, the average AAPL price target of $260.40 indicates a marginal growth potential of 0.68% from the current level.
