Apple reduces iPhone production… to prepare for its replacement?

According to Information provided by Apple component suppliers, Apple has significantly reduced their iPhone production. Could this be a sign they are preparing the next generation?

As has been the case every year since 2007, Apple appears to be developing a new iPhone model, representing the products sixth generation of the device, with the future phone to take over from the current iPhone 4S. There is still not a lot of information about the devices eventual characteristics even though it is supposed to represent the completely new and remodelled LTE compatible iPhone that most people were expecting in October 2011.

The launch window most often talked about is the autumn, even though the WWDC developer’s conference taking place in June should provide us with more information, at least about any evolution being made to the iOS platform.

According to analyst Shaw Wu, information recently taken from component suppliers indicates that Apple has substantially reduced their production run of the iPhone, down 20 to 25%, to prepare for the arrival of the new model.

Shaw Wu envisages a launch of the new iPhone in September or October, leaving two quarters for assemblers to prepare and manage the large volumes of components required for the release of a new iPhone. The same decision was taken last year for the iPhone 4, when the launch of the iPhone 4S was being prepared.

The same analyst predicts that Apple may only ship between 26 and 28 million iPhone’s this quarter, less than the forecast 30 to 31 million expected by most analysts. The eventual reduction in sales won’t be due to reduced demand though.

In terms of the new iPad, everything is on track with the shipping volumes even being slightly higher than projections thanks to an additional 2048 x 1536 pixel Retina screen supplier being signed (most likely Sharp). This could see around 15 million new iPad’s being shipped this quarter, rather than the previously anticipated 14 million.