Apple Cuts the Number of iPhones Being Produced

Apple is making fewer iPhones, according to an industry analyst. One possible reason for this: the company is already getting ready for its next-generation smartphone.

According to a note to investors released this morning by Shaw Wu from Sterne Agee, production of iPhones has been cut by 20% - 25% when compared to last quarter. Wu came to this conclusion by talking to parts suppliers in Asia, not from information provided by Apple itself.

The analyst believes this is Apple making sure there won't be an oversupply of its handsets when the next model is introduced. But that doesn't mean he thinks a launch of the sixth-generation iPhone is imminent. As he said in today's note: “AAPL is opting to be conservative with its suppliers to factor in a potential 2-quarter pause ahead of the refresh and also to manage inventory."

There have been quite a few rumors, and a tremendous amount of speculation, on when Apple is going to launch its next smartphone. The majority of recent reports point to a fall release, although they range through September and October. Apple itself is keeping mum on the issue.