Apple Reduces iPhone 17 Air Production Due to Low Demand, Shifts M5 Vision Pro Manufacturing to Vietnam

Apple is actively refining its supply chain strategies, as evidenced by the recent adjustments concerning the iPhone 17 Air and the M5 Vision Pro. This continuous evaluation reflects the company’s commitment to aligning production with market demands.

Apple Reduces iPhone 17 Air Production Amid Low Demand Insights

According to a recent survey from KeyBanc Capital Markets, there is “virtually no demand for the iPhone 17 Air, ”coupled with a limited consumer willingness to invest in foldable devices. This revelation has prompted Apple to reduce production of the iPhone 17 Air significantly.

The survey did highlight a different trend, indicating steady but cautious demand for the broader iPhone 17 series. Notably, consumer interest continues to gravitate towards the higher-end iPhone 17 Pro and iPhone 17 Pro Max models.

Nikkei Asia further reported that Apple is scaling back its production plans for the iPhone 17 Air while simultaneously increasing manufacturing orders for its other variants. However, specifics regarding the extent of these production cuts were not disclosed.

In related news, Apple has postponed the launch of its anticipated $3, 900 foldable iPad, which is now not expected until at least 2029. The delay stems from ongoing engineering challenges, particularly concerning the device’s weight and its expansive 18-inch “giant foldable screen.”

On a positive note, Apple remains in collaboration with Samsung Display to address the technical hurdles related to producing reliable foldable screens that feature minimal crease visibility. Additionally, Apple’s first foldable iPhone is reportedly facing similar setbacks, primarily due to intricate issues tied to its hinge mechanisms and screen elements.

Mizuho analysts suggest that Apple has decreased its initial production expectations for related display panels from an anticipated 13 million units to just 9 million units, reflecting adjustments to market demand and production capabilities.

Apple Shifts M5 Vision Pro Production to Vietnam

In a significant operational shift, the packaging for the new M5 Vision Pro now indicates that assembly is taking place in Vietnam rather than China. This strategic move aligns with Apple’s efforts to diversify its manufacturing locations and mitigate risk.

Given that the M5 Vision Pro represents Apple’s lowest-volume product, it was already well-suited for such a manufacturing realignment. Furthermore, Apple’s forthcoming home automation devices—including a new HomePod featuring a 7-inch display, advanced indoor security cameras, and a tabletop AI robot—are also projected to be produced in BYD’s facilities in Vietnam.

This transition to Vietnam is part of a broader strategy by Apple to safeguard itself against geopolitical uncertainties. Vietnam has strategically positioned itself as a safer production hub by entering a comprehensive trade agreement with the previous Trump administration, which may help mitigate potential tariff issues.

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