production

UBS analyst Maynard Um corroborated claims from earlier this week that Apple would be cutting their production. Friedman Billings Ramsey analyst Craig Berger stated that Apple would be cutting their iPhone 3G production by a 40%. Now Um has found evidence in the supply chain that iPhone levels are down by 1.7 million to 2.3 million.

According to a report by Craig Berger, analyst with Friedman Billings Ramsey, Apple has cut their Q4 production of the iPhone 3G by more than was anticipated. Onlookers were expecting them to cut production by around 10% as a sequential production drop, but Berger claims Apple may cut it by "more than 40%" than their Q3 numbers.

Despite it's shortcomings, the iPhone 3G is selling like hotcakes, and it's quickly overtaking sales of the first generation device in the short amount of time that it's been open. At the first launch, it took a year just to sell 6 million iPhones, but the iPhone 3G will reach its 6 million mark next week at the latest, and may have already done so.

There are a lot of people who want iPhones, so the faster Apple's manufacturer can make them, the better. Foxconn, the company that builds the iPhone for Apple, is doing very well keeping up, building a whopping 800,000 iPhone 3G's a week, but according to TechCrunch, quality control might be suffering as a result.