Kuo: iPhone 16 Orders Cut by 10 Million, Non-Pro Models Hit Hardest
Kuo: iPhone 16 Orders Cut by 10 Million, Non-Pro Models Hit HardestRenowned Apple analyst Ming-Chi Kuo stated in his latest report that iPhone 16 orders have been slashed by approximately 10 million units for the fourth quarter of 2024 and the first half of 2025, with non-Pro models bearing the brunt of the reduction. This has resulted in a revised iPhone 16 production volume of around 84 million units for the second quarter of 2024
Kuo: iPhone 16 Orders Cut by 10 Million, Non-Pro Models Hit Hardest
Renowned Apple analyst Ming-Chi Kuo stated in his latest report that iPhone 16 orders have been slashed by approximately 10 million units for the fourth quarter of 2024 and the first half of 2025, with non-Pro models bearing the brunt of the reduction. This has resulted in a revised iPhone 16 production volume of around 84 million units for the second quarter of 2024.
Kuo believes that Apple's iPhone revenue for the current quarter may not fully reflect the impact of production cuts due to a smaller gap between production and sales compared to last year's fourth quarter, coupled with a stronger product mix (higher production of Pro Max models in September and October).
However, Apple's iPhone revenue is expected to face pressure in the first quarter of next year due to a year-on-year decline in overall shipments and the launch of the SE4, which weakens the iPhone product portfolio. While some market participants are optimistically anticipating a dramatic boost in iPhone shipments from AppleIntelligence in the short term, the recent order cuts may indicate a lower likelihood of fulfilling this optimistic expectation, at least in the short term.
Kuo is confident that Apple is best positioned to achieve device-level AI success and holds a positive outlook on AppleIntelligence's potential as a popular paid service in the long term. However, he believes that significant growth in iPhone shipments may require more hardware innovation to materialize.
He notes that iPhone shipments in the current quarter are unlikely to be significantly impacted by production cuts due to a smaller gap between production and sales and the increased production of Pro Max models. Nevertheless, iPhone sales in the first quarter of next year are expected to suffer, primarily driven by a year-on-year decline in overall shipments and the product portfolio weakness resulting from the SE4 launch.
Kuo believes that AppleIntelligence, despite its potential as a key revenue source for Apple in the future, is unlikely to significantly boost iPhone shipments in the short term. He stresses that more hardware innovation is necessary to achieve substantial growth in iPhone shipments.
Tag: Kuo iPhone Orders Cut by Million Non-Pro Models Hit
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