Apple Faces Decline in iPhone 16 Demand

Apple's stock experienced a decline on Wednesday after analyst Ming-Chi Kuo from TF International provided a pessimistic outlook on iPhone 16 demand.

Key Points:

• Kuo indicated that Apple has reduced orders by 10 million for iPhone models during the fourth quarter of 2024 through the first half of 2025.
• The company's shares dropped over 2% in recent trading.
• Most of the cuts affected non-pro iPhone 16 models, leading to a revised production forecast of approximately 80 million, 45 million, and 39 million units for Q4 2024, Q1 2025, and Q2 2025, respectively—each figure representing a year-over-year decrease.
• The updated forecast for the second half of fiscal 2024 now estimates production at 84 million units, down from the previously expected 88 million.
• According to Kuo, there’s “no evidence yet that Apple Intelligence could boost iPhone shipments in the near term.”

Recent Developments:

• Apple launched the iPhone 16 at a recent 'glowtime' event, showcasing the new artificial intelligence assistant, Apple Intelligence.
• Initially, Wall Street analysts expressed optimism that the AI-powered iPhones would encourage upgrades from older models.
• On Wednesday, Apple presented a preview of its Apple Intelligence features, including integration with ChatGPT, with the official rollout set for iOS 18.1 next week.