Apple Stands Firm on iPhone Air Production

Apple continues to show confidence in its iPhone Air production, even as rumors of declining demand circulate. A recent investor note from TD Cowen suggests that the company has not altered its production targets for 2025, indicating a strong belief in the ultra-thin model’s potential. Reports had previously emerged claiming that Apple was reducing output for the iPhone Air due to weaker consumer interest, but TD Cowen's analysis contradicts this narrative, affirming that production plans remain unchanged.

The report forecasts 3 million units for the iPhone Air in Q3 2025 and 7 million units for Q4 2025. Additionally, overall production figures for the iPhone 17 series remain stable, projected at 54 million units for the September quarter and 79 million units for December. This stability counters speculation from analysts like Mizuho Securities of Japan, who suggested a cut of 1 million units for the iPhone Air while increasing other models' production.

TD Cowen's findings present a picture of stability, rather than panic. Their investigations within Apple's supply chain found no signs of reduced production, indicating that earlier rumors may have been premature. It’s crucial to understand that Apple’s production strategies do not always align with short-term sales figures. The company’s flexible supply chain allows for quick adjustments based on demand changes.

Historically, Apple’s Pro models tend to dominate early sales cycles, while non-Pro and mid-tier models, such as the iPhone Air, gain traction later in the year. This suggests that Apple might simply be allowing more time for the iPhone Air to resonate with consumers. While the long-term success of the iPhone Air remains uncertain, Apple appears to be far from losing hope in its thinnest iPhone to date.