Apple reduces iPhone 16 production due to lower sales

A Apple appears to be facing challenges with its latest smartphone lineup. According to a recent report from Barclays, the Cupertino giant may have reduced iPhone 16 production by around 3 million units.

This decision was made based on recent supply chain checks, specifically affecting a “key semiconductor supplier” for iPhone orders through the December quarter.

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iPhone 16 sales are below expectations

Barclays analysts point out that iPhone 16 sales at launch showed a 15% drop compared to the previous year. For the September quarter, which includes July, August and part of September, iPhone shipments are expected to reach 51 million units. It’s worth noting that the iPhone 16 had two additional days of sales this year compared to last year’s iPhone 15 launch.

However, the outlook for the December quarter appears more worrying. Barclays cites several factors that could be negatively impacting demand for the iPhone 16, including the “phased rollout of Apple Intelligence,” “limited AI adoption outside the U.S.,” and “lack of hardware differentiation.”

Wait times for the iPhone 16 have also been significantly shorter compared to its predecessor, which could indicate weaker demand. However, it is important to note that delivery times can be influenced by several factors and do not always accurately reflect the real demand for the product.

Apple is expected to release its fiscal 2024 fourth quarter financial results in early November, followed by fiscal 2025 first quarter results in early February. These reports will provide a clearer view of the iPhone 16’s sales performance and the impact of these potential production reductions.

What’s new in iPhone 16

The main new feature of the iPhone 16 is the Apple Intelligencean artificial intelligence tool that promises to revolutionize interaction with the device. To achieve this, Apple equipped iPhones with A18 and A18 Pro processors.

The iPhone 16 and 16 Plus return to the vertical camera layout, as in the X and XR models, and introduce an action button for personalized shortcuts, in addition to a dedicated camera button.

The Pro cameras have a 48 MP sensor, 4K video recording at 120 fps, 5x zoom and a new ultra-wide lens. The iPhone 16 Pro Max, with a 6.9-inch screen and titanium chassis, has the largest battery ever seen in an iPhone. The new iPhones Pro capture spatial audio for content that supports Apple Vision Pro.

Source: 9to5Mac