Apple has reportedly reduced its iPhone 16 orders by 10 million units, reflecting weaker demand than anticipated for the standard models in its new lineup. According to well-known industry analyst Ming-Chi Kuo, Apple is adjusting its production targets for the first quarter of 2025, scaling back total shipments from 88 million units to 84 million units.
This reduction is likely linked to lower-than-expected interest in the iPhone 16 and iPhone 16 Plus models, while the more expensive Pro models continue to perform well. This trend highlights an ongoing challenge for Apple—convincing consumers to purchase its non-Pro devices.
Demand shifts towards Pro models
Although Apple’s iPhone 16 standard models offer significant improvements over previous generations, they appear to be struggling to attract the same level of attention as the Pro models. Consumers seem to gravitate towards higher-end versions, which feature enhanced specifications and design elements that appeal to tech enthusiasts and those willing to spend more on premium devices.
Apple has faced similar issues in the past with non-Pro models, which struggled to stand out against their Pro counterparts. The price difference between the models and the added features in the Pro versions often make the more expensive option more appealing to many buyers.
While this shift in consumer preference might concern Apple, it’s important to note that the Pro models typically carry higher profit margins. This means that the company’s profitability may not be significantly affected despite a drop in overall unit sales.
Apple’s earnings report is expected soon
Apple is set to release its quarterly earnings report next week, which should offer more insights into the performance of the iPhone 16 series and provide guidance for the upcoming holiday season. Analysts will watch closely how the company plans to navigate the changing demand dynamics within its product lineup.
The weaker demand for the standard iPhone models could influence Apple’s strategy moving forward, particularly as it faces increased competition in the smartphone market. However, with the Pro models continuing to generate strong interest, Apple remains in a strong position as it enters the critical holiday shopping period.
The coming months will be crucial for Apple as it tries to balance production and consumer demand. The holiday quarter results could shape the company’s strategy for future iPhone releases.
