Apple Cuts iPhone 16 Production After Sales Fall Short Of Expectations Apple is going to reduce production after the iPhone 16 did not sell as expected. Apple analyst Ming-Chi Kuo posted on Medium and informed that the company is going to reduce production.
According to Kuo, the company is going to cut 10 million units of phones from the last quarter of 2024 to the middle of 2025. It is said that the company has made a strategy to produce fewer Plus and Pro models.
By the end of 2024, Apple is expected to produce 84 million units of phones. Earlier, the company had planned to produce 88 million units.
In the first quarter of 2025, the company aims to produce 46 million units, while in the second quarter of 2025, it said that it will produce 39 million units.
Even if the company produces less iPhone 16, there will be no immediate impact on the income. Because Apple’s most expensive phone iPhone 16 Pro Max is expected to sell the most at that time. However, its impact will be seen in the first quarter of 2025.
The impact of the company’s low production of phones on revenue will be seen in the first quarter of 2025. Especially with the launch of the iPhone SE 4, there is a possibility that the average price will decrease.
The company expected the expansion of Apple Intelligence to increase sales. However, the attraction of users towards the new model is not so much. Apple made the camera capture button and AI the most distinct features.
It was said earlier that Apple has reduced the production of iPhone 16 by 3 million units. Various reports claim that iPhone 16 sales have dropped by 15 per cent year-on-year.
