Vanilla iPhone 16 and 16 Plus Suffer From Lackluster Demand: Report

According to renowned Apple analyst Ming-Chi Kuo, Apple is significantly reducing production targets for its iPhone 16 and 16 Plus models, with cuts reaching up to 10 million units for the period extending through the first half of next year.

The revised production forecast for the iPhone 16 lineup in Q4 2024 now stands at 80 million units, marking a decline from the previously adjusted target of 84 million. This represents a substantial decrease from the iPhone 15 series production volume of 90-91 million units during the same period last year. Production volumes are expected to continue declining, with projections of 45 million units in Q1 2025, further dropping to 39 million units in Q2 2025.

Kuo is skeptical regarding Apple Intelligence’s potential to drive demand for the iPhone 16 series. There are only two days left before Apple rolls out AI features to its iPhones, at least in the US. iPhones in other regions will likely get Apple Intelligence soon afterward.

It is worth mentioning that not all AI features will be unlocked straight away as some are expected to roll out later on sometime in 2025.

In a separate development, he reports that production of the iPhone SE 4 is scheduled to begin in December, with Apple targeting production of approximately 8.6 million units through Q1 2025 for their upcoming budget-friendly model. The iPhone SE 4 is rumored to be based on the iPhone 14 chassis, which would give it a much bigger screen and battery compared to the previous iPhone SE models.