iPhone 16 series made its debut last month at the Apple Glowtime event. Over the past few months, it was expected that iOS 18’s big feature, Apple Intelligence, will be driving sales for iPhone 16 model. However, as per known Apple analyst Ming-Chi Kuo, Apple Intelligence is a failure because Apple may have cut iPhone 16 orders before release. Citing his own supply chain survey, Kuo wrote in his blog that “iPhone 16 orders were cut by around 10M units for 4Q24— 1H25, with most of the cuts affecting non-Pro models.”
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Kuo believes that Apple is set to produce 84 million iPhones in the latter half of 2024, a decrease from the previously anticipated 88 million units. This adjustment reflects a broader reduction in overall production, with fourth-quarter forecasts dropping from 84 million to 80 million, first-quarter projections falling from 48 million to 45 million, and second-quarter expectations declining from 41 million to 39 million.
Overall, this amounts to a total reduction of approximately 10 million units, as detailed by industry analyst Ming-Chi Kuo.
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A key takeaway from Kuo’s analysis is that the anticipated boost from Apple’s AI initiatives may not materialise as swiftly as expected. “Apple’s recent order cuts suggest this optimistic expectation may not materialise in the short term,” Kuo noted. He expressed confidence in Apple’s potential to excel in on-device AI, suggesting that while the long-term prospects for Apple Intelligence as a popular paid service remain promising, immediate growth in iPhone shipments may necessitate further hardware innovations alongside these AI advancements.
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While iPhone 16 sales have been underwhelming in the US market, they have reportedly performed better in China, with the Pro models showing stronger demand compared to the standard versions.
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