Apple has made adjustment to its production plans, with the tech giant cutting iPhone 16 orders by 10 million units, the news came from a report by well-known industry analyst Ming-Chi Kuo. As Apple cut iPhone 16 orders by 10 million units, it has impacted the fourth quarter of 2024 and the first half of 2025, is expected to affect iPhone revenues, especially due to a less favorable product mix.
Apple Cut iPhone 16 Orders by 10 Million Units: Report
Kuo’s analysis reveals that the majority of the order cuts will impact the standard iPhone 16, as opposed to the iPhone 16 Pro models. The Pro versions, featuring more advanced displays and cameras, have seen higher consumer demand compared to the regular models. As a result, Kuo estimates Apple will produce 84 million iPhone 16 units for the second half of 2024, down from an earlier forecast of 88 million units.
Kuo further projects that Apple’s partners will manufacture around 80 million iPhones in the fourth quarter of 2024, with production dipping in early 2025. He estimates 45 million units will be produced in the first quarter of 2025, and 39 million in the second quarter, marking a decline compared to the previous year’s figures.
Impact on Revenue
The production cuts are likely to put pressure on iPhone revenue for the first half of 2025. Kuo suggests that the launch of the iPhone SE 4, a more budget-friendly model, will play a role in this downturn. Despite the production challenges, Kuo remains optimistic about Apple’s future in AI innovation. He believes that Apple’s new “Apple Intelligence” feature, set to launch soon, could be a major growth area for the company moving forward.
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