Apple(US:AAPL) Bei Jing Shang Bao·2025-11-11 15:49Core Viewpoint - Apple has decided to postpone the release of the next-generation iPhone Air due to lower-than-expected sales, significantly impacting its supply chain [1][2]. Group 1: Product Release and Supply Chain Impact - Apple has informed internal engineers and external suppliers to remove the iPhone Air 2 development project from the 2026 fall release schedule, with no new timeline provided [1]. - Foxconn, one of the assembly partners for iPhone Air, has dismantled all but one production line and is expected to cease production by the end of the month [1]. - Another partner, Luxshare Precision, completed its production tasks by the end of October [1]. Group 2: Market Performance and Consumer Reception - The iPhone Air, positioned between the iPhone 17 standard and Pro versions, has not met sales expectations, partly due to its high starting price of $999 and compromises in key configurations [2][3]. - The iPhone Air's initial pre-order phase saw rapid sell-outs, but the market interest did not sustain after the official launch on October 22 [2]. - Complicated eSIM activation processes have deterred some consumers from purchasing the iPhone Air [2]. Group 3: Analysis of Market Positioning - Analysts suggest that the existing iPhone 17 Pro and standard models adequately meet high-end user needs, leaving little room for the iPhone Air to carve out a new market segment [3][4]. - Historical attempts by Apple to introduce new models like the mini and Plus have also failed to establish new market segments, indicating a pattern of challenges in expanding the iPhone lineup [3][4]. - The iPhone Air's ultra-thin design has been criticized for sacrificing user experience, with consumers favoring models that offer better performance and features [4][5].