Analyst: Apple cuts production of base model iPhone 16 by 10 million units

Reputable analyst and insider Ming-Chi Kuo said that Apple will reduce production of iPhone 16 in the next two quarters.

Here's What We Know

According to the expert's information, the production of regular iPhone 16 models will be reduced the most. It is expected that in the second half of 2024 their number will be about 84 million devices.

Ming-Chi Kuo clarifies his information with the following figures:

• in Q4 2024, about 80 million iPhone 16s will be produced, compared to 84 million during the same period in 2023;
• in Q1 2025, Apple will produce 45 million new smartphones vs. 48 million for the same period in 2024;
• 39 million versus 41 million in Q2.

The analyst does not believe that a 10 million smartphone production cut in 2024 will seriously affect Apple's 2024 earnings, but in 2025, such a scenario is expected.

Ming-Chi Kuo, unlike some of his other colleagues, does not agree that Apple's Intelligence capabilities will attract enough customers to significantly increase demand for the iPhone 16, but the Chinese is confident that in the long term, integrated AI will encourage more users to switch to more advanced iPhone models. But for that to happen, Apple needs significant hardware innovation.

Source: Ming-Chi Kuo