On Wednesday Eastern Time, Apple's stock price fell by 2.16%, which may be related to two pieces of bad news: first, well-known Apple supply chain analyst Guo Mingchi revealed that Apple's iPhone 16 was cut in orders; Secondly, sources have revealed that Apple has significantly reduced the production of Vision Pro in recent months.
Is Apple's iPhone 16 cut by about 10 million orders?
According to Guo Mingchi, Apple has reduced orders for iPhone 16 by approximately 10 million units in the fourth quarter of this year and the first half of 2025.
Guo Mingchi revealed that most of the order cuts affect the regular version of iPhone 16, not iPhone 16 Pro - the latter has higher hardware configuration and is more popular among consumers.
Therefore, the current estimated production of iPhone 16 in the second half of this year is 84 million units, "Guo Mingchi wrote in the article
Guo Mingchi currently expects Apple to produce a total of 80 million iPhones in the fourth quarter, down from about 84 million in the same period last year. He expects the total iPhone production in the first quarter of 2025 to be 45 million units, followed by 39 million units in the second quarter, lower than the 48 million and 41 million units in the same period this year.
Guo Mingchi said, "iPhone revenue is expected to face pressure in the first half of next year due to a year-on-year decline in shipments and the possibility that the launch of SE4 may not be favorable for the overall product portfolio
He expects Apple's iPhone SE4 to begin mass production in December this year, with an estimated production of around 8.6 million units from December to the first quarter of next year. Apple's iPhone SE is usually the most affordable in its product line, but it is not updated annually.
Guo Mingchi said, "I believe Apple is in the most advantageous position in terms of artificial intelligence on devices, and I am confident in the long-term potential of Apple Intelligence to become a popular paid service... However, the significant growth in iPhone shipments may require further hardware innovation to complement the development of artificial intelligence
Apple Intelligence is expected to be released as a beta feature in the iOS 18.1 update next week for new users to try out. The latest iPhone 16 and last year's iPhone 15 models both support this feature. The first function is to allow users to summarize text messages and emails, select automatic reply to text messages, and so on.
Apple has significantly reduced the production of Vision Pro
According to informed sources, Apple has significantly reduced production of its mixed reality headset Vision Pro since the beginning of this summer and may cease production of the current version of the product by the end of the year.
In February of this year, Apple officially launched the Vision Pro, hoping to revive consumer demand. However, after the product was released, the enthusiasm of its consumers has been declining due to the excessively high price and competition from cheaper products such as Quest on the Meta platform.
At present, the starting price of Apple Vision Pro in the United States is about $3500, while the price of Meta's Quest 3 earphones is only about $500.
According to employees of three Vision Pro suppliers cited by the media, upstream suppliers have so far produced enough components to produce 500000 to 600000 Vision Pro devices. One of the employees revealed that their factory had already suspended the production of Vision Pro components in May.
The report quoted an employee as saying that Apple has also informed device assembler Luxshare Precision in recent weeks that it may need to stop production in November.
In June of this year, there were reports that Apple was committed to releasing a more affordable and less functional visual product by the end of 2025, and had suspended research and development on the next generation of high-end Vision headsets.