Apple's iPhone 16 Pro series meet expectations amid 'lackluster' demand for base models
Apple's iPhone 16 Pro models have met expectations, while demand for the base model and 16 Plus is lackluster compared to last year, according to analyst Ming-Chi Kuo. Assembly orders remain unchanged, and suppliers are continuing production during China's National Day holiday. Component orders for the base model and 16 Plus have been slightly reduced by less than 5%. Shipments for the 16 Pro are similar to last year's 15 Pro, but shipping times are shorter. Kuo maintains a production estimate of 88M to 89M units for Q4 2024, slightly lower than last year's 90M to 91M units.
The demand for Apple's (NASDAQ:AAPL) iPhone 16 Pro models has generally met expectations so far, but that of the iPhone base model and 16 Plus remain lackluster compared to last year, according to TF International Securities analyst Ming-Chi Kuo.
Ming-Chi said in a post on X, that assembly orders have almost remain unchanged. Meanwhile, suppliers had been asked to continue producing two Pro models during China's National Day holiday, indicating that demand for the Pro models has generally met expectations so far.
The analysts added that some component orders for mid-November onwards have been slightly reduced (mainly for the 16 base model and 16 Plus), but by less than 3% to 5%, which is essentially negligible.
The U.S. tech giant's iPhone 16 Pro's shipments are similar to last year's 15 Pro, however, the current shipping times for the 16 Pro are shorter than those of the 15 Pro. Meanwhile, demand for the 16 base model and 16 Plus remain lackluster compared to last year, according to Ming-Chi.
The analyst noted that the next focus would be the potential impact on the U.S. market demand and shipments, after the company's AI tool Apple Intelligence becomes available in late October.
Ming-Chi maintained his previous production estimate for the iPhone 16 at 88M to 89M units for the fourth quarter of 2024, slightly lower than last year's 90M to 91M units.