Apple cuts iPhone production ahead of next-gen model

From CNET News.com: Apple may already be prepping for the production of its next-generation iPhone.

The company is significantly cutting back on the production of the current iPhones, according to supplier checks by Sterne Agee analyst Shaw Wu. The number of iPhones produced may have fallen by 20 to 25 percent on a quarter-over-quarter basis, Wu said in a research note published today.

The reduction suggests Apple is being conservative and giving suppliers a two-quarter pause ahead of the introduction of a new iPhone, which Wu believes will come around September or October. The pause will allow suppliers to better manage inventory and prepare for the new model.

Apple had previously reduced the production of iPhone 4 devices ahead of the iPhone 4S.

As a result of the checks, Wu pegs the potential shipment of iPhones at 26 to 28 million units, below Wall Street's average estimate of 30 to 31 million. He noted that the reduction was due primarily to the iPhone refresh, as opposed to weaker demand for the product.

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