Analyst believes Apple is cutting iPhone 15 production, before official launch

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Typically, we hear from analysts around a big launch like the iPhone 15 launch. However, this one is a bit surprising. According to analyst Jeff Pu, Apple is apparently already cutting production of the new iPhone 15 models.

Pu mentions that Apple is expected to build approximately 77 million iPhone 15 units by the end of the year. Apple was originally estimated to build around 83 million units by the end of the year. So it’s a reduction, but not a huge one – about 7%.

So why could Apple be cutting production already? Well, according to Pu, there are two main reasons for this. First, the more obvious one is, supply issues. Yes, three years after the pandemic started, we’re still talking about supply chain issues. And it is likely to affect the mass production of iPhone 15. Specifically, Pu is mentioning the Sony camera sensors as well as the new titanium frame for the pro models. Another issue that Apple might be having is with the new thinner bezels on the Pro displays here.

Apple may have adjusted production based on projected demand

Companies like Apple are usually really in tune with the demand for an upcoming product. While something like the iPhone will be starting mass production months ahead of the launch, Apple still needs to have a rough idea of how many units they are going to sell. And it could be that the cut in production is due to the demand concerns.

While some are thinking that the iPhone 15 is going to be a super-cycle for Apple, others don’t agree. On top of that, the iPhone 15 Pro and Pro Max are set to be more expensive than their predecessors. Seeing the first real price increase in the US since the iPhone X back in 2017. Which could result in lower demand too. Of course, we cannot forget about the fact that iPhone sales revenue dropped in the third fiscal quarter of 2023. From $40.67 billion to $39.67 billion. Not a huge drop at all, but a drop nonetheless.

Then there’s the iPhone 16. There’s rumors that this could be a huge upgrade for the iPhone. With WiFi 7 and a new 48-megapixel ultrawide sensor being included. Of course, there’s a long way to go for the iPhone 16, and likely plenty more upgrades coming to that model too.

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