Apple's latest venture, the iPhone Air, is reportedly underperforming in the market, as analyst Ming-Chi Kuo suggests its current Pro and standard models already sufficiently cater to high-end user demands. This observation coincides with Apple's decision to scale back iPhone Air production significantly, while simultaneously boosting manufacturing orders for its more successful iPhone 17 and iPhone 17 Pro series.
iPhone Air Struggles as Flagship Models Dominate Sales
On October 22, 2025, prominent Apple analyst Ming-Chi Kuo communicated via X (formerly Twitter) that the iPhone Air had failed to meet sales projections. He highlighted that the established iPhone Pro and standard lineups effectively saturate the premium smartphone segment, leaving minimal opportunity for newer iterations like the Air. Kuo explicitly noted that previous attempts with mini and Plus models, much like the current Air, have similarly struggled to gain significant market share. This assessment follows reports of Apple drastically cutting its production targets for the iPhone Air, with output anticipated to fall below 10% of September’s volume from November 2025 onwards, nearing end-of-life production levels. Conversely, demand for the iPhone 17 and iPhone 17 Pro has surpassed initial forecasts, prompting Apple to increase their production. Despite challenges such as trade tariffs and a sluggish global smartphone market, Apple intends to maintain iPhone 17 production at a robust 85 to 90 million units. Kuo also projected that most suppliers would reduce capacity by over 80% by the first quarter of 2026, with certain long lead-time components potentially being discontinued by the close of 2025. This move underscores the company's strategic shift towards its more successful flagship products.
The strong market reception for the iPhone 17 models is evident in their sales figures, which, according to Counterpoint Research, have surpassed iPhone 16 units by 14% in the U.S. and China within the first ten days of their launch. This success is largely attributed to notable enhancements, including upgraded processors, increased storage capacities, superior displays, and improved front-facing cameras. Following Counterpoint's report, Wedbush analyst Dan Ives commented on Apple's trajectory towards a $4 trillion market capitalization, attributing this momentum to the triumph of the iPhone 17 and emphasizing the importance of Apple's upcoming AI roadmap. Ananda Baruah of Loop Capital, who has since upgraded Apple stock to 'Buy,' suggested that this current growth surge could signal the commencement of a multi-year iPhone growth cycle extending through 2027. Apple is scheduled to announce its fourth-quarter earnings after market close on October 30, with analysts surveyed by Benzinga Pro projecting earnings of $1.76 per share on revenues of $101.67 billion. This period of intensified focus on core, high-performing models and a clear future strategy in AI could prove to be a pivotal moment for the technology giant.