"Demand is weak": Apple cuts iPhone 16 production by 10 million units

Analyst Ming-Chi Kuo reports that Apple has reduced its orders for the iPhone 16 by 10 million units, primarily affecting the less expensive models, as demand for the iPhone 16 Pro and Pro Max continues to show strong performance.

Consequently, the total production volumes for the iPhone 16 in the second half of 2024 are estimated at 84 million units (down from 88 million). Kuo clarifies that the reduction of 10 million units covers a full three quarters: from the end of 2024 to the first half of 2025.

Previously, the analyst noted that total sales of the iPhone 16 were quite high; however, demand for the "cheaper" models—the iPhone 16 and iPhone 16 Plus—was significantly weaker than anticipated. Interestingly, in Ukraine, the most popular model among the new iPhones at the start of pre-orders was the iPhone 16 Pro Max with 256GB in bronze color (according to the Allo network), priced at 70,999 hryvnias.

Recall that next Thursday, Apple will release its quarterly earnings report, while a day or so prior, it will unveil new Macs with M4 chips.