What's happened
Apple's latest iPhone 17 series, launched in September, has outperformed previous models in key markets, with demand rising sharply. Meanwhile, the company is scaling back production of the iPhone Air due to slow sales, and shifting some manufacturing to Vietnam amid geopolitical and supply chain adjustments. The move reflects broader supply chain diversification efforts.
What's behind the headline?
The demand for the iPhone 17 series indicates strong consumer interest in Apple’s latest innovations, especially in China and the US, where sales have nearly doubled compared to last year. The high demand for the iPhone 17 and 17 Pro models, driven by improved displays, storage, and camera features, suggests that Apple’s focus on premium features continues to resonate. However, the slow sales of the iPhone Air, despite its redesign and premium materials, imply that consumers prefer heavier models with better battery life and camera flexibility. The shift of some manufacturing to Vietnam reflects Apple’s strategic effort to diversify supply chains amid geopolitical tensions and tariffs, reducing reliance on China. This move could accelerate as Apple aims to balance maintaining good relations with China while safeguarding its supply chain. The scaling back of Air production and the focus on high-demand models indicate a recalibration of Apple’s product strategy, emphasizing profitability and supply chain resilience. The upcoming foldable phone, rumored to reuse Air engineering, could benefit from this technological groundwork, signaling future innovation in Apple’s portfolio.
What the papers say
According to Ars Technica, demand for the iPhone Air has fallen short of expectations, leading to scaled-back shipments and production, with analysts suggesting that consumers prefer heavier models with better battery and camera features. The South China Morning Post reports that Apple is shifting some manufacturing, including the latest Vision Pro, to Vietnam, as part of its broader supply chain diversification away from China. Bloomberg highlights that the iPhone 17 series has outsold the iPhone 16 by 14% in the first 10 days, with strong demand in both the US and China, driven by improved features and pricing. The NY Post notes that Apple’s shares hit an all-time high, with the new lineup outperforming last year’s models, especially in China, where the demand for the iPhone 17 is nearly double that of the previous year. Business Insider UK emphasizes that the most expensive Pro Max model is seeing the strongest demand, driven by carrier strategies and consumer upgrade cycles, with early sales of the iPhone Air also promising in the US, despite initial delays in China.
How we got here
Apple introduced the iPhone 17 series in September, featuring the new A19 chip, improved cameras, and a redesigned iPhone Air. The company continues to produce most iPhones in China but is increasingly shifting manufacturing to Vietnam and other countries to diversify supply chains and mitigate tariffs. The move follows earlier efforts to produce more devices in India and Vietnam, especially for the US market.
Go deeper
Common question
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Why Is Apple Moving Production to Vietnam?
Apple's recent shift of some manufacturing to Vietnam has sparked curiosity. Many wonder what this means for the company's supply chain, product prices, and the tech industry as a whole. In this page, we'll explore why Apple is diversifying its manufacturing locations, what impact this has on tech prices, and whether other companies might follow suit amid geopolitical tensions.
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Will Vietnam Become a New Tech Hub?
As major tech companies like Apple shift production to Vietnam, many are wondering if the country is poised to become the next global technology hub. This move reflects broader trends in supply chain diversification and geopolitical shifts. But what does this mean for the future of tech manufacturing, prices, and global markets? Below, we explore the key questions surrounding Vietnam's rising role in tech production and what it could mean for consumers and companies alike.
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Why Is Apple’s New iPhone 17 So Popular?
Apple's latest iPhone 17 has been making waves worldwide. With its new features, improved performance, and strategic market moves, many are wondering what’s driving its popularity. From sales figures to supply chain shifts, here’s what you need to know about the buzz around the iPhone 17 and what it means for Apple and consumers alike.
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Why Is the New iPhone 17 So Popular?
The iPhone 17 has quickly become a hot topic among tech enthusiasts and everyday users alike. With its improved features, sleek design, and strong sales performance, many are wondering what makes this latest model stand out. In this guide, we'll explore why the iPhone 17 is capturing so much attention, what it means for buyers, and how Apple's supply chain shifts are influencing the market. Keep reading to find out more about this exciting release and what it could mean for your next smartphone.
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Why Are Tech Companies Diversifying Manufacturing?
Many tech giants are shifting their manufacturing strategies, moving some production out of traditional hubs like China. This trend is driven by a mix of geopolitical tensions, supply chain risks, and the desire to reduce dependency on a single country. But what does this mean for consumers and the tech industry? Below, we explore the reasons behind these shifts and what they could mean for the future of tech manufacturing.
More on these topics
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Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services.
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Timothy Donald Cook is an American business executive, philanthropist and industrial engineer. Cook is the chief executive officer of Apple Inc., and previously served as the company's chief operating officer under its cofounder Steve Jobs.