Veteran Apple analyst Ming-Chi Kuo has released a new report on the production and sales of the iPhone 16. According to the report, iPhone 16 production is progressing as planned, with assembly orders for all four models remaining unchanged. However, there is a notable 3-5% reduction in parts orders for the iPhone 16 and 16 Plus, indicating lower demand for these models compared to the Pro versions.
Kuo emphasizes that demand for the base models (iPhone 16 and 16 Plus) has been lower than expected, while orders for the iPhone 16 Pro and 16 Pro Max are similar to last year’s iPhone 15 Pro orders.
Another interesting point is that Apple has asked suppliers to continue producing the two Pro models during China’s national holidays, showing that demand for the Pro models is meeting Apple’s expectations so far. However, Kuo notes that the delivery time for the iPhone 16 Pro is currently shorter than it was for the iPhone 15 Pro at the same time, which may indicate a slight decline in demand.
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One key factor that could influence iPhone 16 sales in the coming months is the Apple Intelligence software update. Expected to be released in late October, this update is anticipated to improve performance and increase the appeal of the iPhone 16. However, Kuo believes that Apple Intelligence’s impact will mainly be felt in the U.S., as this technology won’t be available in Europe or China anytime soon.
Kuo estimates that iPhone 16 production in the fourth quarter of 2024 will be between 88 and 89 million units, slightly lower than last year’s 90-91 million units, reflecting increasing competition in the smartphone market and the challenges Apple faces.
Source: MacRumors