The iPhone 16 series hasn’t sold as well as Apple expected, and another analyst said production is being scaled back.
Typically reliable insider Ming-Chi Kuo reveals that Apple has cut back. iPhone16 Orders will increase by nearly 10 million units from the last quarter of 2024 to the first half of 2025.
This reduction mainly affects Standard and Plus models, suggesting that demand for Pro models is in line with expectations.
After the cuts, Apple will produce 84 million units by the end of the second half of 2024, compared to the originally planned 88 million units. The quarterly breakdown is as follows:
- Q4 2024: 80 million units (Q4 2023: 84 million units)
- Q1 2025: 45 million units (Q1 2024: 48 million units)
- Q2 2025: 39 million units (Q2 2024: 41 million units)
Apple’s revenue is not expected to take a hit in the fourth quarter, as there was a significant difference in iPhone production and sales in the fourth quarter of 2023 compared to this year. Another boost is that the iPhone 16 Pro Max, the most expensive model in the lineup, is expected to be the top seller in the quarter. The impact of price cuts will become more pronounced in the first half of 2025, due in part to lower average prices. With the release of iPhone SE 4.
It was previously believed that the rollout of Apple Intelligence would boost sales, but it appears the company is no longer counting on AI to turn things around.
Today’s report echoes a Barclays report from a few weeks ago that said Apple had cut prices. iPhone16 Production volume in the December quarter was 3 million units. In that report, iPhone16 This was a 15% decrease compared to the previous year.
Both reports suggest that one reason for the weak demand for Apple’s latest devices is a lack of focus on hardware innovation.
Does this mean Apple won’t be able to overtake Samsung to become the number one seller in the fourth quarter of this year, as previously predicted? Only time will tell.
