Despite all the innovations, the basic iPhone 16 model does not meet Apple’s hopes for sales growth, says the famous analyst Ming-Chi Kuo. Apple has cut production of the iPhone 16 by 10 million units just two months after its launch as consumers are reluctant to buy smartphones with AI-powered features despite their potential. True, the reason may also be that these functions have not been released yet.
Kuo reportedthat expected iPhone shipments for the end of this year have been cut from 84 to 80 million units, and that production will be reduced in the first half of 2025. However, the production of iPhone 16 Pro models will not change, as they are still very popular thanks for improved screens and cameras, as well as a more powerful A18 Pro processor.
The main features of Apple Intelligence, including tools for working with text and generating images, will not be revealed until late October and early 2025. However, analysts are skeptical that the innovations will that can increase sales significantly. Users can wait until the release of the iPhone 17 to evaluate whether it is worth upgrading for the new AI capabilities.
In addition to reducing iPhone production, Apple has also reduced production of the Vision Pro.
