Apple has reportedly cut iPhone 16 production by around 10 million units into the first half of 2025 with most of the cuts affecting the base iPhone 16 models, according to a new analysis from esteemed analyst Ming-Chi Kuo.
In a new Medium post, Kuo states that Apple has revised its iPhone production quota for the fourth quarter of 2024 and the first half of 2025 by around 10 million units. Apple and its partner are now pegged to produce around 84 million iPhone 16 units in the second half of 2024, slightly down from the earlier 88 million estimate.
Apple will produce around 45 million and 39 million units of the latest iPhone between 1Q25 and 2Q25 respectively, slightly down year-over-year compared to production estimates for the iPhone 15 lineup. On the bright side, Kuo says that iPhone 16 Pro Max production increased during 3Q24.
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Kuo states that the main takeaway from these figures is that most of the market is too optimistic about the impact of Apple Intelligence on iPhone demand. Kuo believes that Apple Intelligence could drive up demand in the long term, but Apple first needs to further innovate in new AI features and on-device processing.
