SAN FRANCISO—Apple Inc. has cut planned production of iPhones in the second half of the year by up to 4 million units, according to investment bank Pacific Crest Securities.
Apple (Cupertino, Calif.) will build a total of 14 million to 15 million iPhones in the second half of the year, down from previously planned production of 18 million units, according to Pacific Crest (Portland, Ore.).
The decreased production should provide Apple with sustainable pricing power, Pacific Crest said. The firm raised its second half iPhone unit sales projection to 11 million from 8 million.
Assuming that Pacific Crest's numbers are accurate,
Apple could ranks as high as seventh in the world in handset sales in 2008, up from 29 in 2007, according to
Will Strauss, an analyst with Forward Concepts (Tempe, Ariz.). Strauss said he had no specific knowledge of Apple's iPhone production targets or a planned decrease.
"That's a remarkable achievement," said Strauss of Apple's projected jump in handset OEM rankings. He added that he is confident that Apple will make it into the top 10 regardless of whether Pacific Crest's production forecast is accurate.
Strauss earlier this year forecast that Apple would sell at least 10 million iPhones in 2008, up from 5 million in 2007.
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