Vanilla iPhone 16 and 16 Plus Face Dwindling Demand: Analyst Report
According to well-known Apple analyst Ming-Chi Kuo, Apple is significantly scaling back its production targets for the iPhone 16 and 16 Plus models, with reductions reaching up to 10 million units for the first half of next year.
The revised production forecast for the iPhone 16 lineup in Q4 2024 is now set at 80 million units, down from the previously adjusted target of 84 million. This represents a considerable drop from the production volume of 90-91 million units for the iPhone 15 series during the same period last year. Expectations indicate that production will continue to decline, with projections of 45 million units in Q1 2025 and further reducing to 39 million units in Q2 2025.
Apple’s AI Features and Demand Challenges
Kuo expresses skepticism regarding the ability of Apple Intelligence to stimulate demand for the iPhone 16 series. With only two days remaining before Apple introduces AI features for iPhones in the U.S., other regions are anticipated to receive these updates soon after. However, it’s important to note that not all AI features will be available immediately, as some are expected to roll out later in 2025.
Upcoming iPhone SE 4 Production
In a separate update, Kuo reported that production of the iPhone SE 4 is set to begin in December, with Apple targeting approximately 8.6 million units for Q1 2025. The iPhone SE 4 is rumored to be based on the iPhone 14 chassis, promising a larger screen and battery compared to previous iPhone SE models.
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