brewer

Another Report That Apple is Cutting iPhone Production

There are a lot of good explanations for this, but the popularity of the iPhone looks not to be waning. And, Apple has been recession proof so far. They are actually selling MORE product this year than last (not just iPhone but Macs and iPods as well.) iPod is the only one that is even somewhat discretionary, and yet many people would quickly replace one that was broken or lost.

Production does go up and down, and it's not necessarily a direct relationship to demand, but also reflects the channel supply, etc... Plus, they were bound to ramp up a lot of them early on, to stay ahead of demand. So, demand can stay constant or even increase, but production might not follow, especially if a new product is coming. The original was on the market for a year and a half. The second generation might only last a year. They'd be stupid to keep producing them at a breakneck speed if they are also working on a new model.

All they would have to do is put in video conferencing, a larger screen, even a higher capacity battery, etc... and a great many people would rush to upgrade. This keeps the product going. Apple is not afraid to replace their top selling model with a new one (as they have done for many iPod versions.) It's not as if any 'competitor' is even close to making a knock-off of the FIRST version.