iPhone production may be cut by 40 percent

2008-11-03 23:39:35 (GMT) (Caymanmama.com - Technology News)

Production of Apple Inc’s iPhone might nose-dive by more than 40 percent in the fourth quarter.

Salt Lake City, Utah (CaymanMama.com) — The Apple iPhone trend turned into an iconic symbol of modern technology bringing customers out in droves trying to get the cellular, touch-screen sensation that virtually revolutionized the way people use their cell phones.

However, in a recent report by Reuters, FBR Capital Markets said on Monday that production of Apple Inc’s iPhone might nose-dive by more than 40 percent in the fourth quarter.

“Previous checks indicated that iPhone production would fall about 10 percent sequentially in calendar 4Q,” said FBR’s statement by Craig Berger, “(but) our new checks indicate that iPhone production could fall more than 40 percent sequentially in 4Q.”

FBR’s Berger went on to say that his findings were a “good proxy for broader consumer demand.”

Van Baker of Gartner notedthat if there were such a cut in iPhone production, the dive may very well reflect Apple’s marked increase of delivery to foreign countries. When the iPhone came out, Apple had a need for mass production in order to fill the supply chain both at home and abroad. However, Baker said that all Apple Inc. needs to do now is to meet continuing demand, which may be tapering off.

The production cut “could end up painting an ugly picture, but not as ugly as it seems on face value,” Baker continued.

Apple Inc. sold 6.89 million iPhones in the third quarter, outselling the BlackBerry made by Research in Motion Ltd.

iPhone production may be cut by 40 percent

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