Apple analyst Ming-Chi Kuo says the company will cut iPhone 16 orders by 10 million units | Wilnesh News

apple Industry supply chain analyst Ming-Chi Kuo said the company has cut iPhone 16 orders by about 10 million units for the fourth quarter of this year and the first half of 2025, causing the company’s stock price to fall about 2% on Wednesday.

Kuo said most of the price cuts affect the regular iPhone 16, rather than the iPhone 16 Pro models, which have better displays and better lenses and are more popular with consumers.

“Therefore, iPhone 16 2H24 production is currently estimated at 84 million units,” Kuo wrotenoted that his estimate was lower than about 88 million units.

Kuo now predicts Apple partners will produce 80 million iPhones in the fourth quarter, down from about 84 million last year. He expects production in the first quarter of 2025 to be 45 million units and 39 million units in the second quarter, which are lower than 48 million units and 41 million units respectively.

“iPhone revenue is expected to face pressure in 1H25 due to year-on-year decline in shipments and a less favorable product mix due to the launch of SE4,” Kuo said, referring to the iPhone SE 4 phone that he expects Apple to ship in December. Apple’s iPhone SE model is typically the cheapest in its lineup, but it doesn’t get updated every year.

“I believe Apple is best positioned to succeed in on-device artificial intelligence, and I’m confident in Apple Intelligence’s long-term potential to become a popular paid service,” Kuo said. “However, significant growth in iPhone shipments may require further hardware Innovation to match the development of artificial intelligence.”

Apple Intelligence is expected to launch in the iOS 18.1 update sometime next week as a beta feature for new users to try. It is supported by the latest iPhone 16 phones and last year’s iPhone 15 models. The first feature will allow users to summarize text messages and emails, select automatic replies to text messages, and more.

Apple did not immediately respond to CNBC’s request for comment.

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