It looks like Apple made the same mistake as Samsung with the iPhone Air

Both Samsung's Galaxy S25 Edge and Apple's iPhone Air, recently launched ultra-slim smartphone models, are reportedly underperforming in sales, suggesting a miscalculation of consumer demand for this specific form factor. Samsung has reportedly cancelled the planned Galaxy S26 Edge, while Apple is set to cut iPhone Air production by one million units this year, as noted by Mizuho Securities. This indicates a strategic reassessment by both tech giants regarding their slim phone offerings, despite strong sales for Apple's other models like the iPhone 17 Pro and Pro Max.

Analysis

Both Samsung's Galaxy S25 Edge and Apple's iPhone Air, recently launched ultra-slim smartphone models, are reportedly experiencing weaker-than-expected sales performance. This trend suggests a potential miscalculation by both leading manufacturers regarding consumer demand for devices primarily distinguished by their slim form factor.

In response to this market reception, Samsung has reportedly cancelled the planned Galaxy S26 Edge, indicating the S25 Edge may become a singular product offering. Similarly, Apple is planning to cut iPhone Air production by one million units this year, a move highlighted by Japan's Mizuho Securities. This production cut occurs despite strong sales for Apple's other flagship models, the iPhone 17 Pro and Pro Max, which are outperforming last year's versions.

The collective underperformance of these slim models underscores a broader industry challenge where product differentiation based solely on form factor may not resonate with current consumer preferences. Investors should note the strategic adjustments by both companies, reflecting a reassessment of their product roadmaps in the competitive smartphone market.

Key Decisions for Investors

• Investors should closely monitor Samsung's and Apple's future product development strategies, particularly regarding form factor innovation and feature prioritization, given the lukewarm reception of their slim phone models.
• For Apple (AAPL), evaluate the net impact of the iPhone Air's production cut against the robust sales of its iPhone 17 Pro and Pro Max models, which continue to drive overall revenue.
• Consider the broader implications for the smartphone market, as this trend suggests consumer preference may prioritize functionality and other features over extreme slimness, potentially influencing R&D allocation across the sector.