Apple is preparing to face a demand for its current iPhone top-model, the 4S. The reason for this isn't down to the lack of components or stock, but it is the rumoured sixth generation iPhone that is expected to hit the market, in a few months.
According to Shaw Wu, AN analyst for Sterne Agee, Apples' suppliers have had a reduction in iPhone orders, by 20 to 25 per cent. In the previous quarter, Apple has asked its supply chain to deliver 35.1 million units.
If Wu's information proves to be correct, the iPhone maker has only ordered the manufacturing of 26 to 28 million handsets, in June. This volume is below the figures estimated by Wall Street analysts that have previously pointed to 30 - 31 million iPhones being ordered.
"From our understanding, the reason for the reduction is not demand related but rather due to the upcoming 6th generation iPhone refresh likely in the September-October timeframe", explained Shaw Wu.
He believes Apple has adopted a conservative attitude, ahead of what is expected to be a slow quarter. The company also has 8.6 million iPhones in its distribution inventory, plus 2.6 million handsets being added this quarter. This inventory should last for at least a month and a half.