Apple is just a week away from reporting its quarterly earnings, and providing a forecast for the holiday quarter. Today we may have received a preview of what to expect, though. Ming-Chi Kuo reports that iPhone 16 orders have been slashed by 10 million units heading into the end of the year, with most cuts impacting the non-Pro models.
Holiday quarter may see weaker iPhone 16 demand than expected
Ming-Chi Kuo writes on Medium:
iPhone 16 orders were cut by around 10M units for 4Q24–1H25, with most of the cuts affecting non-Pro models. As a result, iPhone 16 production for 2H24 is now estimated at 84 million units (down from around 88 million previously).
Kuo clarified in a post on X that the 10 million unit cut spans a full three quarters: the end of 2024 all the way through the first half of 2025.
Previously, Kuo indicated that out of the gate, sales for the entire iPhone 16 lineup appeared strong—matching expectations.
But these cuts indicate slowing forecasted demand heading into one of Apple’s busiest times of year.
As Kuo notes, the main drivers of low demand are the entry model iPhone 16 and the iPhone 16 Plus.
Despite having stronger entry models than a normal year, buyers seem to continue preferring the iPhone 16 Pro and Pro Max.
Which ultimately, on one hand, is good news for Apple. The company having strong demand for its premium models is something to celebrate.
But it seems not as many buyers are compelled by what the iPhone 16 and 16 Plus are offering. At least, not at the moment, with Apple Intelligence still unavailable in public release.
9to5Mac’s Take
It will be interesting to see Apple’s holiday guidance and whether it points to similar cutbacks or not. It’s possible they won’t make much impact until early 2025.
Overall, the iPhone 16 lineup still seems to be doing pretty well, and could see even more success post-iOS 18.1 and Apple Intelligence. For now though, Apple looks to be scaling back in moderation.
What do you make of this cutback? Do you think it signals problems for Apple? Let us know in the comments.
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