Is iPhone Sales Cooling Down in the AI Era? Apple's iPhone 16 Order Cuts May Be Linked to Lack of AI Features

Is iPhone Sales Cooling Down in the AI Era? Apple's iPhone 16 Order Cuts May Be Linked to Lack of AI Features

Is iPhone Sales Cooling Down in the AI Era? Apple's iPhone 16 Order Cuts May Be Linked to Lack of AI Features

While artificial intelligence (AI) technology continues to advance, it has not yet become a primary driver for most consumers to upgrade their phones. Recent reports suggest that expectations for iPhone 16/17 are prematurely high, and the market's optimistic outlook for a 5% to 10% increase in shipments is likely to be unfulfilled. This could be linked to the iPhone 16's lack of significant new features and limited AI applications.

"Smartphone hardware needs to be redesigned to truly support AI applications. This process may take until 2026 or 2027," said a supply chain source. In the absence of mature AI features, iPhone 16 sales have been somewhat affected.

According to supply chain insiders, Apple may have cut iPhone 16 production for the quarter ending December due to lower-than-expected demand, leading to significant order cuts from key component suppliers. "We believe that Apple may have just cut production of key semiconductor components for the iPhone by about 3 million units for the December quarter," said a supply chain source.

Industry experts point out that the sluggish initial sales of the iPhone 16 are partly due to the fact that the Apple Intelligence feature will not launch in China and the European market this year. This feature is Apple's AI-powered smart assistant designed to provide users with a more personalized experience. However, its limited global rollout has undoubtedly impacted the iPhone 16's appeal.

These insights highlight the crucial role AI technology will play in the future of the mobile phone industry. However, current AI features are not yet powerful enough to be a compelling reason for consumers to upgrade. Therefore, phone manufacturers like Apple need to invest heavily in AI technology in the coming years to develop more powerful and practical AI features that can truly attract consumers to purchase new devices.

In conclusion, the lukewarm sales of the iPhone 16 are not a coincidence but rather the result of several factors, including the lack of AI features and unmet market expectations. How AI technology will be deployed in the mobile phone industry in the future remains to be seen, and it is a topic worthy of our continued attention.