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 Friday, February 08, 2008

Are Apple sales in trouble? Two research analysts have reported in recent days that Apple is aggressively cutting back production on iPods and iPhones, while increasing production on Mac computers.

It seems that the iPod Touch may have seen the weakest sales. Berger reported production orders for the Touch have fallen the most. The device may suffer from being less than an iPhone, since it has no phone capabilities but is substantially more expensive than Apple's music-playing iPhones. The touch relies on Wi-Fi for connectivity, so users who aren't in range of a Wi-Fi connection simply can't get online.

Meanwhile, Asian production facilities indicate that production is going up for Macs, down for iPods, and the iPhone situation is volatile.

For MacBooks and iMacs, production has moved up more than 20 percent so far this quarter, Banc of America said, which indicates Apple is replenishing inventory and seeing solid demand. Banc of America predicts continued growth through March.

After severe production cuts in December and early January, production is now up for iPhones. Banc of America expressed concern that production and demand for the innovative phone remain lackluster.

Meanwhile, Net Applications released new numbers on its operating-system statistics, which revealed that Macs accounted for the largest percentage of Internet traffic ever -- 7.57 percent. iPhone-based traffic nudged up from 0.12 percent in December to 0.13 percent in January. More importantly, Net Applications' numbers show that iPhone traffic is coming from many more countries than have official wireless carriers for the phones, indicating substantial gray-market sales.

"We've heard the rumours that many iPhones are being used outside the officially sanctioned countries. So we decided to check it out and surprise, surprise, it's true. The iPhone has a presence in almost every country on Earth," Net Applications wrote in its report.

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