Apple Cuts Orders as iPhone 16 Demand Falls Short
According to renowned Apple analyst Ming-Chi Kuo, the demand for the iPhone 16 and iPhone 16 Plus models has been underwhelming. In response, Apple has slashed orders, with total iPhone 16 series production for Q4’24 now expected to reach 80 million units—a decrease from the initial projections of 84 million and a significant drop from the 90-91 million units produced for the iPhone 15 series in the previous year.
Kuo’s report further predicts a decline in production for the first half of 2025, with iPhone 16 series production estimated to fall to 45 million units in Q1 and 39 million units in Q2. These cuts are indicative of softer demand for Apple’s latest non-Pro iPhone models, which could be a cause for concern for the tech giant.
Pessimistic Outlook on Apple Intelligence as a Demand Driver
In his report, Kuo maintains a pessimistic outlook on Apple Intelligence as a significant demand driver for the iPhone 16 series. This suggests that the company’s AI offerings may not be enough to entice consumers to upgrade to the new iPhone models.
iPhone SE4 Production to Begin in December
On a more positive note, Kuo reveals that production for the highly anticipated iPhone SE4 is expected to commence in December 2024. Apple is reportedly aiming to produce around 8.6 million units of its upcoming budget device between December and the end of Q1 ’25. The iPhone SE4 is likely to appeal to consumers seeking a more affordable iPhone option, especially with the softer demand for the iPhone 16 non-Pro models.
This development underscores Apple’s continued focus on catering to a diverse range of consumers, from those seeking the latest and greatest technology to those who prefer more budget-friendly options. As we approach the holiday season and the new year, it will be interesting to see how Apple navigates the softer demand for its non-Pro iPhone 16 models and whether the iPhone SE4 will be the budget-friendly alternative that consumers are waiting for.
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