From Boom to Bust? phone 16 Income Fail to Meet Expectations

Need for the phone 16 and 16 Plus appears to be falling short of expectations. Their desire is significantly lower than the phone 16 Pro line. Considering this, Apple apparently reduces manufacturing requests by up to 10 million units. The effects may be felt during the first half of the year. This revision, as noted by well-known Apple scientist Ming-Chi Kuo, suggests that the latest designs do not fire a high level of involvement. At least, it is far from Apple’s suspense. The decline in demand may be the result of different factors. Some of them are business concentration, opposition, or customer preference for higher-end models. The non-Pro designs have always had a spirit in the interest of higher versions.

Below you can see Kuo’s study in detail:

I think Apple is strongest positioned to thrive with on-device AI, and I’m confident that Apple Intelligence will eventually become a well-known paid services. But, to support this AI growth, significant increases in phone shipments will probably require additional hardware innovation.

The phone 16 line ‘ manufacturing estimates are still declining. The Q4 2024 is then expected to yield around 80 million units. This number has been updated from an earlier measure of 84 million. The 90 to 91 million units produced for the iPhone 15 set during the same time last year were now a decrease. Generation of the phone 16 is projected to decline further. It will go over to 45 million units in Q1 2025. Therefore, it will attain 39 million units in Q2 2025. These adjustments come at a significant decrease in the demand for the phone 16 line. It raises potential difficulties in capturing customer attention.

Ming-Chi Kuo continues to doubt whether Apple’s potential to increase demand for the phone 16 line will result in increased interest in these models. However, Kuo hints at a good growth on the budget before: production for the phone SE4 is expected to begin in December. By the end of Q1 2025, Apple reportedly intends to produce around 8.6 million SE4 products, demonstrating a strong commitment to its budgetary offering as it tries to capture more price-sensitive clients.