According to a new 9to5Mac report based on an investor note from Barclays, Apple may have quietly reduced its iPhone 16 production by as many as three million units. This cutback is believed to be tied to supply chain constraints involving one of Apple’s key semiconductor suppliers. The reduction is expected to impact iPhone orders through the December quarter, raising concerns about Apple's ability to meet initial demand for its latest flagship smartphone.
While the September quarter is on track for an estimated 51 million iPhone units, largely due to an 11-day sell-through window compared to nine days for the iPhone 15, the outlook for the December quarter looks less promising.
Barclays analysts believe the combination of recent production cuts, a slower-than-expected rollout of Apple Intelligence, and limited global AI adoption could weaken iPhone 16 demand. Additionally, the lack of major hardware differentiation between the iPhone 16 and its predecessor may be contributing to a potential 15% year-over-year decline in sales.
Barclays also noted that, while the September quarter is relatively stable, there has been flat year-over-year growth in sales during July and August, signaling possible stagnation in consumer interest.
With Apple typically relying on a robust holiday season to boost shipments, the December quarter now poses a significant risk, with analysts warning that the staggered implementation of Apple’s AI-driven features and mixed consumer reception could hinder iPhone 16 performance in the key shopping months ahead.
In this context, it appears that Apple will need to adjust its strategy to address production limitations, as well as consumer expectations, to meet its sales targets for the iPhone 16 moving into 2024.
