With Apple set to announce its quarterly earnings next week, we may be getting a glimpse of what lies ahead. Ming-Chi Kuo has reported a significant reduction of 10 million units in iPhone 16 orders as we approach the end of the year. These cuts mainly affect the non-Pro versions.
Anticipated Lower Demand for iPhone 16 This Holiday Season
As Ming-Chi Kuo notes on Medium:
Orders for the iPhone 16 have been reduced by approximately 10 million units for the fourth quarter of 2024 and the first half of 2025, predominantly affecting the non-Pro variants. This leads to a revised production forecast of 84 million units for the latter half of 2024, down from an earlier estimate of around 88 million.
Kuo later clarified on X that this 10 million unit reduction covers three consecutive quarters, from late 2024 through the first half of 2025.
Initially, Kuo had reported that the launch of the iPhone 16 series was performing strongly, aligning well with market expectations.
However, these recent adjustments suggest a decline in expected demand just as we enter one of Apple’s busiest sales periods.
According to Kuo, the primary contributors to the diminished demand are the base model iPhone 16 and the iPhone 16 Plus.
Even with compelling entry-level options, consumers seem to gravitate more towards the iPhone 16 Pro and Pro Max models.
9to5Mac’s Perspective
It will be crucial to observe Apple’s holiday projections and whether they reflect these cutbacks. The real impact may not manifest until early 2025.
Overall, despite the adjustments, the iPhone 16 series is still performing relatively well and may gain further traction after the release of iOS 18.1 and improvements related to Apple Intelligence. For now, it appears that Apple is making cautious cuts.
What are your thoughts on this reduction in orders? Could it indicate larger issues for Apple? We welcome your insights in the comments below.