Apple reportedly clearing out inventory to make room for next-gen device

Sep 14, 2011 10:12 GMT  ·  By

A report from Taiwan analyzing Foxconn Electronics’ financial situation for the month of August reveals that Apple’s Asian partner has dwindled iPhone 4 production in what appears to be an intentional stock depletion of the current-generation hardware.

Citing industry observers that have seen Foxconn's shipments of iPhone 4 decreasing last month, Taiwanese publication Digitimes speculates the move is an indication of inventory adjustments ahead of the launch of the new iPhone 5.

Also likely is the fact that Foxconn has reduced iPhone 4 production in favor of producing newer, fifth-generation iPhones.

In fact, it makes total sense with Foxconn handling a healthy 85 percent of the entire iPhone 5 assembly, whereas Pegatron Technology has the remaining 15%, and it's only next year that the latter will begin making the phones.

Moreover, Apple is almost certainly launching its new phone in the Septmeber - October timeframe, making it imperative that units are already being mass produced.

Recent chatter among Apple’s Chinese suppliers suggests this is, indeed, the case.

According to various reports citing sources privy to Apple’s iPhone 5 roadmap, the devices are not only being mass produced, they’re also piling up in warehouses waiting for the necessary software to boot them up.

Apple is reportedly rolling out the eight iOS 5 beta to developers this week, with a planned release of the Golden Master (final) build for the end of September.

iOS 5 GM carries the bits required by iPhone 5 assemblers to bring the handsets to life and ultimately ship them back to Apple’s home land, as well as other corners of the world where the Cupertino tech giant plans to sell them.

There’s also talk of an iPhone 4S being unveiled this fall, though analyst reports have been scaling down this possibility lately.

In other words, pretty much everyone is expecting Apple to launch only one new iPhone this year.