Apple shares took a hit on Wednesday following a somber update from market analyst Ming-Chi Kuo at TF International, renowned for his accurate predictions on Apple products. Kuo disclosed that Apple has slashed a total of 10 million orders for the fourth quarter of 2024 through the first half of 2025.
Apple Inc (NASDAQ:) saw a decline of over 2% in recent trading on Wednesday.
The reductions primarily affected non-Pro iPhone 16 models, with total iPhone production for 4Q24, 1Q25, and 2Q25 now projected at approximately 80 million, 45 million, and 39 million units, respectively, all lower than the previous year, as per Kuo’s Medium post.
The decrease in orders for the three-quarter period leading up to H1 2025 indicates that iPhone 16 production for the second half of fiscal 2024 is now anticipated to be 84 million units, down from the initial 88 million units.
Kuo’s bleak forecast on iPhone 16 orders implies that there is currently no indication that Apple Intelligence could drive up iPhone shipments in the near future, he noted.
Apple introduced its iPhone 16 at its recent ‘glowtime’ product event, highlighting the incorporation of its artificial intelligence assistant Apple Intelligence into the new range of iPhones.
Prior to the launch, many on Wall Street were optimistic that the new AI-powered iPhones could entice users of older models to upgrade, potentially sparking a fresh upgrade cycle for the tech giant.
Apple unveiled a new preview of its Apple Intelligence features on Wednesday, including the integration of ChatGPT.
Apple Intelligence is set to be accessible to the public as part of the official iOS 18.1 release next week, as announced by Apple.