Building on last month's report that Apple had "sharply" scaled back iPhone Air production amid soft demand while ramping up orders for the iPhone 17 base and Pro models, a new report reveals that the next-generation iPhone Air, initially slated for a fall 2026 launch, has been postponed. 

The Information, citing people familiar with Apple's production plans, reports that the company is now "delaying the release of next year's iPhone Air" after "sharply scaling back" production of the first-generation model, which debuted this fall, due to sluggish demand.

Despite marketing the iPhone Air as Apple's thinnest and most durable phone, reviewers criticized its short battery life, underwhelming camera sensor, and unimpressive speakers, clear trade-offs made to achieve its ultra-slim profile.

The model accounted for only 3% of iPhone sales in September, compared with 9% for the iPhone 17 Pro and 12% for the Pro Max. Much of its inventory remains unsold.

In mid-October, Nikkei Asia was the first to report on underwhelming iPhone Air demand, leading to "adjustment to production plans." 

However, demand for the non-Air iPhones has remained strong, prompting Goldman analysts led by Michael Ng to ask in a recent note, "Are we in an iPhone supercycle?"

Here's additional color from The Information on Apple's Air problem:

Foxconn, one of two companies that assembles the iPhone Air for Apple, has dismantled all but one and a half of its production lines for the first version and expects to halt all production by the end of the month, according to a person with direct knowledge of the situation. Luxshare, the other company that assembles the device, halted all production at the end of October, according to people with direct knowledge of the developments. In contrast, Foxconn and Luxshare have dedicated dozens of production lines to top-selling models like the iPhone 17 Pro.

. . . 

The failure of the iPhone Air to sell well is the latest demonstration of Apple's struggle to come up with a new variant of the iPhone that is popular with consumers. Apple experimented with a cheaper iPhone with a smaller display known as the iPhone Mini in 2020 but killed that in favor of the iPhone Plus in 2022, which had weaker specs paired with a larger screen. Neither of these variants sold well, and the iPhone 14 Plus faced similar production cuts just weeks after its initial release because of slow sales.

. . . 

Apple planned to launch the second-generation iPhone Air next fall alongside the upcoming iPhone 18 Pro models and Apple's first foldable iPhone. But recently, Apple managers notified engineers and suppliers that they were taking the next iPhone Air off the schedule without providing a new release date, the people said.

The report ended:

However, taking a major iPhone model off the release schedule at this stage in development is a rare if not unprecedented move, according to current and former Apple employees. Apple began working with manufacturing partners on the next-generation iPhone Air this summer just as it was ramping up production of the first model, which debuted in late September.

Hmm.

Add the iPhone Air to the list of duds, including Vision Pro and smarter Siri, Apple Intelligence.