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Investing.com -- Apple’s (NASDAQ:AAPL) iPhone Air demand has fallen short of expectations, prompting the supply chain to begin scaling back shipments and production capacity, according to TF International Securities analyst Ming-Chi Kuo.
In a post on X, Kuo stated that most suppliers are expected to reduce capacity by more than 80% by the first quarter of 2026, while some components with longer lead times are expected to be discontinued by the end of 2025.
The analyst noted that the existing Pro series and standard models already cover the majority of high-end user demand, leaving little room to carve out new market segments. He pointed out that previous attempts with the mini, Plus, and now Air models have all failed to gain traction.
This analysis comes after Nikkei reported that Apple is "drastically" cutting production orders for its new iPhone Air model and shifting focus toward other iPhone 17 variants, citing unnamed sources.
Apple shares fell 2.7% in Wednesday trading following the news.
The production shift follows a KeyBanc survey that showed "virtually no demand for iPhone Air, and limited willingness to pay for a foldable," according to analysts led by Brandon Nispel.
The iPhone Air was introduced as a lighter and more affordable alternative within the iPhone 17 lineup.