Apple drops as analyst says iPhone 16 orders cut

Apple (NASDAQ:AAPL) shares dropped 1.8% after TF International Securities’ analyst Ming-Chi Kuo said iPhone 16 orders have been cut by around 10M units for the next few quarters.

“iPhone 16 orders were cut by around 10M units for 4Q24–1H25, with most of the cuts affecting non-Pro models,” Kuo wrote on his blog. “As a result, iPhone 16 production for 2H24 is now estimated at 84 million units (down from around 88 million previously).”

Kuo added that after the cuts, total iPhone production for the next three quarters are forecast to be around 80M, 45M and 39M unit, respectively, compared to 84M, 48M and 41M in the fourth-quarter of 2023 and first two quarters of 2024, respectively. He also said mass production of the iPhone SE4 will start in December, with projected production around 8.6M units.

Two weeks ago, Kuo said that assembly orders had remained almost unchanged.

Apple did not immediately respond to a request for comment from Seeking Alpha.