iPhone 16 massive sales expectations ‘too optimistic’: Analyst suggests why Apple Intelligence bet may not fetch big
iPhone 16 launch is just a couple of months away and almost every detail about the upcoming Apple iPhone has been revealed in numerous leaks. One of the biggest features in iPhone 16 is believed to be the integration of Apple Intelligence. Unveiled at the WWDC 2024, Apple Intelligence is an iOS 18 feature, however, the Apple iPhone 16 series are expected to get the most out of it. While Bloomberg predicts that the combination of iPhone 16 and Apple Intelligence will drive a surge in demand and earn big money for the Cupertino-based tech giant, known Apple analyst Ming-Chi Kuo suggests something different.
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What supplier data suggests
Citing recent earnings reports from Apple suppliers Largan and TSMC as evidence, Kuo suggests that Apple has not increased iPhone 16 production despite reports suggesting a massive surge.
As mentioned in a report by Macrumors, Apple supplier TSMC did not see a jump in unit growth, while Largan’s reported steady orders for high-end models in 2024 quite similar to last year’s levels. Apple analyst Kyo believes that iPhone 16 orders for the second half of 2024 are around 87 million, which is four million lower than Apple’s order for iPhone 15 units last year. Kuo suggests that increased orders to certain suppliers may be related to “specific reasons within individual industries or components.”
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Why Apple Intelligence may not draw big iPhone 16 sale
Kuo believes that it may be too optimistic to believe that Apple Intelligence will drive a surge in sales of iPhone 16 as the feature is only available in US English. “The launch of Apple Intelligence is generally considered to be the reason for the increase in iPhone 16 orders. However, Apple Intelligence will only be available in Beta for US users in 2H24, and Apple Intelligence Siri only supports English. Regardless of whether Apple Intelligence alone can drive replacement demand (which is another big topic), the expectation that consumers will buy the new iPhone 16 for the Beta version of Apple Intelligence in 2H24 may be too optimistic.” Kuo said in a blog post.
Earlier this week, Bloomberg said that Apple is projecting to ship more than 90 million units of the iPhone 16 series in 2024.
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