A series of iPhone 16s are displayed inside the Apple Store at Tun Razak Exchange in Kuala Lumpur, Malaysia, on September 20, 2024.
Anise Lin | Getty Images News | Getty Images
apple Shares fell about 2% on Wednesday after industry supply chain analyst Ming-Chi Kuo announced the company had cut iPhone 16 orders by about 10 million units for the fourth quarter of this year and the first half of 2025. It fell.
Kuo said most of the cuts will affect the regular iPhone 16, rather than the iPhone 16 Pro model, which has a better display and better camera and is more popular with consumers.
“As a result, iPhone 16 production in the second half of 2024 is now estimated at 84 million units,” Kuo wrote, noting that his own estimate was down from about 88 million units.
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Kuo now expects Apple’s partners to produce 80 million iPhones in the fourth quarter, down from about 84 million last year. He predicts production will be 45 million units in the first quarter of 2025 and 39 million units in the second quarter, down from 48 million and 41 million units, respectively.
Referring to the iPhone SE 4, a mobile phone that Apple expects to ship in December, Kuo said, “Due to a year-on-year decline in shipments and a deterioration in product mix due to the launch of SE4, iPhone revenue will decline in the first half of 2025. It is expected that this will be under pressure.” Apple’s iPhone SE models are typically the most affordable in the lineup, but the models aren’t updated every year.
“We believe Apple is best positioned to succeed with on-device AI, and we believe in the long-term potential of Apple Intelligence to become a popular paid service,” Kuo said. “However, this AI development will require further hardware innovation to significantly increase iPhone shipments.”
Apple Intelligence will be introduced in the iOS 18.1 update sometime next week as a beta feature for new users to try. Supported on the latest iPhone 16 phones and last year’s iPhone 15 models. The first feature will allow users to summarize text messages and emails, and choose automatic replies to text messages.
Apple did not immediately respond to CNBC’s request for comment.
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