Categories: Technology

Apple to cut iPhone 16 component orders amid ‘Lacklustre’ base model sales: Ming-Chi Kuo

Cupertino-based Apple recently launched its iPhone 16 lineup at the It’s Glowtime event, held in September at Apple Park, California. This latest series of smartphones showcases an array of impressive features, including the powerful A18 family of chipsets, an enhanced design, and the introduction of an Action button across all models. Additionally, a new dedicated Camera Control button aims to further improve user experience, all contributing to sales performance that appears to align with Apple’s expectations.

Analyst Ming-Chi Kuo from TF International Securities shared insights on the sales of the iPhone 16 series via a post on X. He noted that demand for the models, particularly the iPhone 16 Pro variants, has met Apple’s forecasts thus far, with assembly orders remaining stable. In contrast to the previous year’s iPhone 15 Pro, which faced significant supply constraints during its initial weeks on the market, the iPhone 16 Pro is reportedly experiencing shorter shipping times, indicating strong consumer interest.

However, the situation differs for the base models, with Kuo stating that sales of the iPhone 16 and iPhone 16 Plus have been “lacklustre.” In response, Apple has decided to reduce component orders by three to five per cent for these models starting mid-November, reflecting a shift in demand dynamics.

Looking ahead, Kuo highlighted that Apple’s next priority will be to cater to demand in the United States, particularly with the upcoming launch of Apple Intelligence—its suite of artificial intelligence features for the iPhone and other devices. These AI enhancements are anticipated to debut alongside the iOS 18.1 update, expected to roll out later this month, with speculation pointing towards October 28 as the probable release date.

As for production expectations, Kuo suggested that iPhone 16 output might remain between 88 and 89 million units in the fourth quarter of 2024, consistent with previous projections. Should this estimate hold true, it would mark a slight decrease compared to the production figures of the iPhone 15 series, which were reported at approximately 90 to 91 million units.

 

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Published: 10 Oct 2024, 02:39 PM IST

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