The baseline iPhone 16 is already the most capable Apple non-Pro smartphone to date. It has all the same additional buttons as the iPhone 16 Pro, including camera controls and action buttons. It can capture spatial photos and videos, and will eventually include all new Apple Intelligence features. Nevertheless, a prominent supply chain analyst has reported that the company will cut iPhone production just two months after its launch as people are not too enthusiastic about the promise of an AI-enabled iPhone.
market analyst Ming-Chi Kuo of KGI Securities wrote on his Medium blog on Wednesday that Apple has cut orders for about 10 million standard iPhones for the end of this year. Kuo previously estimated that shipments would be around 84 million units by the end of this year, but that has now fallen to an estimated 80 million units. Apple is also expected to reduce iPhone 16 production in the first two quarters of 2025.
That’s still a lot of iPhones, but considering Apple has been dealing with declining iPhone sales for over a year, it’s not good news for the Cupertino tech giant. Kuo said the production decline may not be reflected in Apple’s fourth-quarter financial statements because of the difference between production and sales. Still, entering 2025, shipments and mobile phone revenue are likely to decline year over year.
Apple is not expected to reduce the number of iPhone 16 Pro models, which feature better display and camera settings, as well as the more powerful A18 Pro processor. iPhone sales also declined into early 2024, despite promises that the iPhone 15 Pro would be the first phone to promote Apple Intelligence.
Kuo said he doesn’t expect Apple’s AI capabilities to boost iPhone sales. Apple released new phones with iOS 18. However, users will have to wait until October 28th to get the first few AI features, such as writing tools, outside of the beta. You will have to wait even longer until iOS 18.2 to generate AI images. The legendary Siri revamp, which would allow the assistant to access your data across your devices, isn’t expected to materialize until sometime next year, according to internal sources cited by Bloomberg’s Mark Garman.
Even if Apple Intelligence has a chance to increase sales, market analysts remain skeptical, saying, “Apple’s recent order reductions suggest that this optimistic expectation may not materialize in the short term.” “There is,” he wrote. iPhone buyers may wait until the iPhone 17 is upgraded. By that time, we will have already seen the results of Apple Intelligence and will know whether it is worth using it or not. Either that, or Apple fans haven’t seen anything truly exciting or innovative with the annual smartphone releases in recent years.
Apple has reportedly scaled back production of its other big bet, the $3,500 Vision Pro. Anonymous sources on the production line cited by The Information said Apple had limited headset production to between 500,000 and 600,000 units. It appears that the demand can be met. iPhone makers may start scaling back Vision Pro production in November. This comes just days after the Wall Street Journal’s interview with CEO Tim Cook, in which he declared how he intends to be the “best” in AI capabilities for iPhones, iPads, and Macs. did. Mr. Cook also said he was “always looking to sell more of everything,” including the company’s first “spatial computer.” Still, he acknowledged, “At $3,500, it’s not a mass market product.”
Support for Apple Intelligence is reportedly set to launch early next year, and the rumored iPhone SE 4 could boost iPhone sales. Garman’s sources say that in addition to the AI-enabled iPad mini we’re currently seeing, we’ll also see a new iPad 11 in 2025 that could support AI. Tim Cook’s company says it plans to release more AI-enabled products in its lineup, including the MacBook Pro, Mac mini, and iMac, all powered by the M4 chip, and plans to launch them by the end of October or early November. It is being
