Apple Cuts iPhone 16 Orders by 10 Million Units Amid Strong iPhone 16 Pro Model Demand

Apple Cuts iPhone 16 Orders by 10 Million Units Amid Strong iPhone 16 Pro Model Demand

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Written By Jamie Spencer

iPhone 16 Pro Models Are Booming, with iPhone 16 showing a Weaker Demand

With Apple’s quarterly earnings report just around the corner, new insights suggest that iPhone 16 demand may not be as strong as initially expected—at least for the non-Pro models.

Renowned analyst Ming-Chi Kuo reports that Apple has reduced iPhone 16 production by around 10 million units, spanning from the holiday quarter of 2024 through the first half of 2025. This comes as the company faces softer demand for its entry-level models, the iPhone 16 and iPhone 16 Plus.

Weaker Holiday Demand for iPhone 16 Non-Pro Models

In a Medium post, Kuo revealed that iPhone 16 orders have been cut by around 10 million units for the end of 2024 and into 2025, with most of the reduction affecting non-Pro models. As a result, production estimates for the second half of 2024 are now at 84 million units, down from the previous estimate of 88 million.

Kuo clarified on social media that the cutback is spread across three quarters, from the holiday season of 2024 through the first half of 2025. This points to a more moderate reduction rather than an immediate sharp decline. Despite earlier reports suggesting strong initial sales for the entire iPhone 16 lineup, the demand for the base models appears to be tapering off.

Strong Demand for iPhone 16 Pro and Pro Max

While the iPhone 16 and iPhone 16 Plus are seeing slower sales, the iPhone 16 Pro and iPhone 16 Pro Max models continue to perform well. Consumers appear more drawn to Apple’s premium models, with advanced features and specifications, such as the ProMotion display and enhanced camera systems, driving demand.

This strong Pro model demand is a silver lining for Apple, as it means the company’s more expensive, higher-margin devices are still popular. However, the lower-than-expected interest in the non-Pro models could be a concern, especially as Apple heads into the crucial holiday season.

Key Drivers of Lower Demand

The reduced interest in the iPhone 16 and iPhone 16 Plus may be linked to a few factors. Despite these entry models offering stronger specs than in previous years, they still lack some of the advanced features found in the Pro models, which seem to be a major selling point for many buyers. Additionally, Apple Intelligence, Apple’s new suite of AI-driven features, is still unavailable in public release, potentially dampening the appeal of the base models for now.

While Apple has designed its non-Pro models to offer great value for their price, consumers are clearly gravitating toward the more feature-rich Pro and Pro Max versions.

It will be interesting to see how Apple addresses these developments during its upcoming earnings call and holiday guidance. Although the 10 million unit cut is notable, it’s spread across several quarters, suggesting that Apple is scaling back in moderation rather than reacting to a sudden demand drop.

That said, the iPhone 16 lineup as a whole still appears to be performing well, with strong sales in the premium tier. The release of iOS 18.1 and Apple Intelligence could further bolster demand for all iPhone models, particularly once the new AI-powered features are fully available.

For now, Apple seems to be adjusting its production strategy to reflect a more tempered forecast for the iPhone 16 and iPhone 16 Plus, while continuing to celebrate the ongoing success of its higher-end Pro models. As the holiday season approaches, it remains to be seen how these shifts will impact Apple’s sales performance and outlook heading into 2025.

Jamie Spencer

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