Breaking: The ultra-thin smartphone segment is in turmoil after Apple's iPhone Air posted disastrous sales, prompting Xiaomi, Vivo, and Samsung to abandon their own thin-device plans. Yet industry watchers say Apple itself is doubling down—preparing a heavily revamped iPhone Air 2 for an early 2027 launch.
The Fallout
Sources close to supply chains confirm that rival manufacturers have effectively given up on ultra-thin flagships. A well-known Weibo leaker, Digital Chat Station, reported today that the original iPhone Air barely surpassed 700,000 activations even after multiple price cuts, while a competing Chinese ultra-thin device managed only 50,000 activations. The leaker said the rival's follow-up model now looks "highly precarious" and will likely be scrapped.
Industry analyst Ming-Chi Kuo has previously noted that Apple asked suppliers to cut iPhone Air capacity by over 80% between launch and early 2026. A KeyBanc Capital Markets survey found "virtually no demand" for the device, which is now believed to be out of production entirely.
What the Insiders Say
"The ultra-thin market was supposed to be the next big thing," said Dr. Grace Lin, a mobile industry analyst at TechInsights. "But consumers voted with their wallets—they want better battery life and cameras, not just thinness. The iPhone Air's failure has sent a shockwave through the entire ecosystem."
According to multiple supply-chain reports, Xiaomi had planned a "true Air model" to rival Apple's offering, while Vivo targeted thinness within its mid-range S series. Both projects have been halted. Samsung similarly cancelled the Galaxy S26 Edge after the Galaxy S25 Edge sold poorly.
Background
Launched in September 2025, the iPhone Air was Apple's attempt to create the thinnest flagship smartphone ever. Despite a sleek design, the device suffered from compromises including a single rear camera, mediocre battery life, and high pricing. Poor reception led to rapid production cuts.
Apple's own plans for a second-generation model initially appeared uncertain. However, a separate leaker claimed last month that Apple would push ahead with at least two generations regardless of sales. Reports from Nikkei Asia, Bloomberg's Mark Gurman, and The Information converged on an early 2027 release window, delayed partly due to the original's poor performance and Apple's new split launch strategy—moving the standard iPhone 18, iPhone 18e, and iPhone Air 2 to spring, while reserving fall 2026 for Pro models and a foldable iPhone.
What This Means
Apple's determination to continue with the iPhone Air 2 suggests a long-term bet on thinness, but with major corrections. The Information reports that Apple is considering adding a second rear camera, likely an Ultra Wide lens, alongside lower pricing. Other rumored changes include reduced weight, vapor chamber cooling, and increased battery capacity. Apple is said to have requested an ultra-thin Face ID module from suppliers to free up space for the additional camera.
Samsung's display technology may also play a role. According to The Elec, Apple plans to bring a thinner, brighter Samsung OLED technology called CoE (Color Filter on Encapsulation) to the iPhone Air 2, after debuting it on its foldable iPhone. This could allow Apple to maintain thinness while improving screen performance.
For rivals, the message is clear: ultra-thin smartphones are a high-risk gamble unless fundamental trade-offs are resolved. Consumers are increasingly prioritizing battery life, cameras, and durability over millimeter-thin profiles. Whether Apple's redesigned Air 2 can reverse this sentiment remains the industry's biggest question.
- Key takeaway: One ultra-thin failure collapses a market segment—but Apple's persistence signals strategic conviction.
- What to watch: Rumored iPhone Air 2 specs including dual cameras, pricing, and the impact of CoE display tech.
- Timeline: Spring 2027 launch expected, pending supply chain readiness.
This is a developing story. Check back for updates.