TSX gains after CPI shows US inflation rose 3%
Investing.com -- Apple is reportedly “drastically” cutting production orders for its new iPhone Air model and shifting focus toward other iPhone 17 variants, Nikkei reported, citing unnamed sources.
Shares in the company fell 0.7% in U.S. premarket trade.
The move follows weaker-than-expected consumer interest in the Air model, which was unveiled as a lighter and more affordable alternative within the iPhone 17 lineup.
The production shift comes on the heels of a KeyBanc survey released earlier today that showed “virtually no demand for iPhone Air, and limited willingness to pay for a foldable,” analysts led by Brandon Nispel said in a note.
"We see ASPs, not units, being the driver of growth in FY26. With AAPL trading at ATHs, we see the stock as expensive and pricing in lofty expectations though we are lacking a bear case," the analyst wrote.
The brokerage’s findings also pointed to healthy but measured demand for the broader iPhone 17 series, with the mix “continuing to shift toward Pro and Pro Max models.”
KeyBanc said the results indicate a likely fiscal fourth-quarter iPhone revenue beat, followed by in-line performance in the first fiscal quarter, supported by stronger initial shipments and higher average selling prices.
“Midterm unit pressure offset by ASP uplift” is expected to drive growth, the note said, while the much-hyped AI features have yet to meaningfully influence buying decisions.
Bloomberg separately reported that Apple’s plan for a foldable iPad with a large screen has encountered technical setbacks, delaying its introduction.
The combined signals reinforce investor concerns over Apple’s ability to generate excitement around new form factors, as consumers appear more inclined to stick with premium but traditional iPhone models.
The Nikkei report did not disclose the magnitude of the production cuts or which suppliers would be affected, but analysts say such changes could ripple through Apple’s Asian supply chain in the coming months.