In Short:
Apple launched the iPhone 16 series in September, featuring a powerful A18 chip, a new Action button, and a Camera Control button. Sales, particularly for the iPhone 16 Pro, are meeting expectations, with assembly orders remaining stable. However, the base models, iPhone 16 and 16 Plus, are underperforming, prompting a 3-5% cut in component orders. Apple’s focus now shifts to upcoming AI features in iOS 18.1.
The iPhone 16 series was officially launched by Apple during a special event held in September at Apple Park in California. This latest smartphone lineup from the Cupertino-based tech giant features the powerful A18 family of chipsets, an enhanced design, an Action button across all models, and a new dedicated Camera Control button. As a result of these advancements, the sales performance of the iPhone 16 models is reportedly aligning with Apple‘s expectations.
iPhone 16 Sales Performance
In a recent post on X (formerly Twitter), TF International Securities analyst Ming-Chi Kuo provided insights regarding the sales of the iPhone 16 series. He indicated that demand for the smartphone range, particularly for the iPhone 16 Pro models, has met Apple‘s expectations thus far, with assembly orders remaining stable.
iPhone 16 shipment updates
1. Assembly orders almost remain unchanged. Suppliers had been asked to continue producing two Pro models during China’s National Day holiday, indicating that demand for the Pro models has generally met expectations so far.
2. Some component orders…
— 郭明錤 (Ming-Chi Kuo) (@mingchikuo) October 9, 2024
In addition, demand for the iPhone 16 Pro is reported to be on par with that of the iPhone 15 Pro from the previous year. It benefits from shorter shipping times compared to its predecessor, which faced significant supply constraints during its initial weeks of availability.
However, the same cannot be said for the base models. According to Kuo, sales of the iPhone 16 and iPhone 16 Plus are described as “lackluster.” Consequently, Apple has opted to reduce component orders by approximately 3-5 percent starting mid-November, particularly for these models.
Looking ahead, Kuo suggests that Apple’s next major emphasis will be on addressing demand within the United States, particularly with the anticipated rollout of Apple Intelligence—a suite of artificial intelligence (AI) features for the iPhone and other devices. These AI enhancements are expected to launch with the forthcoming iOS 18.1 update, speculated to be released on October 28.
According to Kuo’s analysis, iPhone 16 production is expected to remain at around 88-89 million units in the fourth quarter of 2024, consistent with prior forecasts. Should this prediction hold true, it would represent a slight decrease compared to the production figures for the iPhone 15 series, which were estimated at approximately 90-91 million units.
