iPhone 16 Production Cuts Rumored: Weak Demand or Too Early to Tell?

iPhone 16 Production Cuts Rumored: Weak Demand or Too Early to Tell?Senior analysts claim that Apple may be cutting production of the iPhone 16 series in the fourth quarter due to lower-than-expected market demand. Component procurement data indicates a reduction in iPhone 16 orders by approximately 3 million units

iPhone 16 Production Cuts Rumored: Weak Demand or Too Early to Tell?

Senior analysts claim that Apple may be cutting production of the iPhone 16 series in the fourth quarter due to lower-than-expected market demand. Component procurement data indicates a reduction in iPhone 16 orders by approximately 3 million units. However, insiders within the supply chain have refuted these claims. They assert that there are no noticeable signs of production adjustments, and overall capacity remains at normal levels. Production lines are even working overtime, including during the National Day holiday, to ensure production progress is unaffected.

Prior to these rumors, reports suggested that the bill of materials (BOM) for the iPhone 16 is around $416 (approximately 2900 Chinese Yuan), a slight increase compared to the $395 BOM of the iPhone 15. The display accounts for the largest portion of this cost, taking up 16% of the total. Rising memory prices are a key factor contributing to the increased costs.

It's important to note that it may be premature to conclude that the iPhone 16 series is facing underwhelming market demand. The highly anticipated Apple Intelligence feature was not launched alongside the new devices in September. This feature is reportedly scheduled to enter testing with the upcoming iOS 18.1 release in October. The introduction of this innovative feature could enhance user experience and potentially impact the iPhone 16 series' market performance positively.

Currently, there is no definitive consensus regarding the production cuts rumors surrounding the iPhone 16 series. Analysts and supply chain personnel remain divided in their assessment of market demand, and the launch of Apple Intelligence could also influence the final market performance. With the release of iOS 18.1 and the unveiling of further market data, we may gain a clearer understanding of the iPhone 16 series' actual market situation.