Tuesday Apple Rumors: iPhone Production Slashed by 20%

It is seen as a signal of slowing global smartphone demand

   

Tuesday Apple Rumors: iPhone Production Slashed by 20%

daily apple rumors  300x180 Tuesday Apple Rumors: iPhone Production Slashed by 20%Here are your Apple rumors and AAPL news items for today:

Slowdown: Due to sluggish growth in global smartphone sales, Apple (AAPL) is reducing the amount of iPhones it will produce during the second half of this year, the Telegraph notes. The company will cut iPhone production by 20% across all iPhone models. The report comes from Wedge Partners analyst Brian Blair. The company will now manufacture between 90 million and 100 million iPhones during the remainder of 2013, down from prior plans to produce between 115 million and 120 million iPhones. Even with the reductions, Apple’s iPhone sales are expected to grow about 26% during the second half of this year, compared to last year. However, that would fall short of earlier Wall Street sales forecasts. Apple is expected to launch an updated version of its iPhone during August or September. Most analysts expect that the new iPhone will be an upgraded version of the current flagship iPhone 5 rather than a completely new generation iPhone. In recent weeks, a number of retailers have begun offering discounts on the iPhone 5 in order to clear inventories ahead of the new iPhone’s debut.

apple logo amid circles 630 200x200 Tuesday Apple Rumors: iPhone Production Slashed by 20%
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Sales Boost: The arrival of the iPhone on the nation’s fourth largest carrier increased Apple’s U.S. market share during the three months ending in May, the Los Angeles Times notes. During the period, the iPhone’s share of the U.S. smartphone market grew 3.5 percentage points, hitting 41.9%. T-Mobile (TMUS) added the iPhone to the list phones its sells in April. 31% of smartphones sold by T-Mobile during the March-April-May period were iPhones. Smartphones running Google‘s (GOOG) Android OS comprised 52% of the overall U.S. smartphone market during the period, up just 0.1 percentage point from last year.

Surprise Change: In an update to the beta version of its new iOS 7 software, Apple altered the font used in previous versions of the software, Business Insider notes. The font was shifted from the lighter Helvetica Neue Light to Helvetica Neue. While the change might seem minor to casual observers, it set off considerable commentary among Apple design watchers. One app maker described the decision as one of the biggest changes the company has ever made during a beta release. The overhaul of iOS is being overseen by Apple’s lead designer Jony Ive. Apple unveiled the preliminary version of iOS 7 at its Worldwide Developers Conference in June and has issued beta versions to app makers in the weeks since. A final version is expected in time for the launch of the next iPhone in August or September.

For more about the company, check out our previous Apple Rumors stories.


Article printed from InvestorPlace Media, http://investorplace.com/2013/07/tuesday-apple-rumors-iphone-production-slashed-by-20/.

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