A sequence of iPhone 16s on show contained in the Apple retailer at Tun Razak Change in Kuala Lumpur, Malaysia, on Sept. 20, 2024.
Annice Lyn | Getty Photos Information | Getty Photos
Apple shares fell about 2% on Wednesday after business provide chain analyst Ming-Chi Kuo stated the corporate has minimize orders for the iPhone 16 by about 10 million items for the fourth quarter of this 12 months and the primary half of 2025.
Kuo stated a lot of the cuts have an effect on the common iPhone 16 as an alternative of the iPhone 16 Professional fashions, which have nicer shows and higher cameras and have been extra in style with shoppers.
“As a result, iPhone 16 production for 2H24 is now estimated at 84 million units,” Kuo wrote, noting that his estimate is down from about 88 million items.
Apple shares
Kuo now forecasts Apple companions will produce 80 million iPhones throughout the fourth quarter, down from round 84 million final 12 months. He estimates manufacturing of 45 million items throughout the first quarter of 2025 and 39 million items throughout the second quarter, down from 48 million and 41 million, respectively.
“iPhone revenues are expected to come under pressure in 1H25 due to a YoY shipment decline and a less favorable product mix due to the launch of SE4,” Kuo stated, referring to the iPhone SE 4 cellphone he expects Apple to ship in December. Apple’s iPhone SE fashions are normally essentially the most reasonably priced in its lineup but it surely doesn’t refresh them yearly.
“I believe that Apple is best positioned to succeed in on-device AI, and I am confident about the long-term potential for Apple Intelligence to become a popular paid service,” Kuo stated. “However, significant growth in iPhone shipments will likely require further hardware innovation to accompany this AI development.”
Apple Intelligence is anticipated to launch in an iOS 18.1 replace someday subsequent week as a beta characteristic for brand spanking new customers to strive. It’s supported by the most recent iPhone 16 telephones and final 12 months’s iPhone 15 fashions. The primary options will let customers summarize textual content messages and emails, select computerized replies for textual content messages and extra.
Apple didn’t instantly reply to CNBC’s request for remark.
