Analyst: Apple To Cut iPhone 3G Production By 40%

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.

Keep in mind, this doesn’t necessarily mean that Apple is cutting their shipments by 40% as well.

The exact reason Apple might cut production by so much more than expected is unknown, but at first glance it appears the company is anticipating a decrease in demand for the device. Still, there may be other reasoning for this.

For example, Q3′s production may have just been abnormally high, so they might have excess supply they might need to clear out.

Still, while it might not be bad news, it isn’t good, either. Berger notes that the cuts are “a negative global demand” signal.

That the firm’s iPhone production plans are being revised lower suggests that the global macroecomomic weakness is impacting even high-end consumers, those that are more likely to buy Apple’s expensive gadgets, and that no market segment will be spared in this global downturn. This is a negative signal for global demand, in our view.

[via Slilcon Alley Insider]

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