Apple cuts iPhone 16 production due to lack of demand, analyst says

Apple is seeing lower-than-expected numbers for the iPhone 16 series introduced in September. According to research by analyst Ming-Chi Kuo, one of the main experts on Apple’s production chain, the company would have reduced the number of orders for the production of its product family by approximately 10 million units.

The value includes the company’s forecast for the fourth quarter of 2024 and the first two quarters of 2025. Apple’s initial predictions for the last period of 2024 were that 88 million units would be produced, but this figure dropped to 84 million and may increase further. If public reception continues to be weak, it will drop to around 80 million.

The idea for 2025 was that the company would produce close to 48 million units in the first quarter, but the expectation is that the value will remain at 45 million. It was estimated that there would be 41 million products produced in the second quarter, but it is possible that this figure could reach 39 million.

Consumers want hardware improvements

These figures express Kuo’s predictions based on industry information. The analyst is extremely well known for being an accurate source when it comes to Apple, and commented that the company would reverse its sales numbers if it announced hardware improvements to keep up with the proliferation of artificial intelligence.

“I believe Apple is well positioned to succeed in AI devices, and I believe Apple Intelligence has the potential to become a popular paid service in the long term,” said Ming-Chi Kuo.

The analyst also points out that the launch of the iPhone SE 4 at lower prices will be one of the factors that will put the iPhone 16 series “under pressure” in the first quarter of 2025. iPhone SE 4 is expected to arrive in September. It will be an internal competitor on weight due to the more accessible price for most consumers.