Recent developments in Apple's supply chain suggest that the anticipated surge in iPhone sales driven by the upcoming iPhone 16 might not be materializing as expected.
Apple analyst Ming-Chi Kuo recently reported on the latest supply chain updates from major component manufacturers, including Largan and TSMC. Both companies have indicated that there has been no noticeable increase in parts orders for the iPhone 16 that would suggest a significant sales spike.
According to Kuo, the projected order volume for the iPhone 16 in the latter half of 2024 is approximately 87 million units, which is notably lower than the 91 million units ordered for the iPhone 15 during the same period in 2023.
This data contradicts earlier forecasts that linked high expectations for the iPhone 16 to the anticipated introduction of new Apple Intelligence features. Reports had suggested that these advanced AI capabilities could drive a super cycle in iPhone sales.
However, Apple's strategy appears to be more measured, with major updates to Apple Intelligence not expected until early 2025. Consequently, the lack of an immediate release of these features may be dampening short-term demand.
In light of these insights, it appears that Apple's current production and order strategies reflect a more conservative outlook on the iPhone 16’s impact. This suggests that while the new iPhone is set to feature advancements, the company is not yet banking on a super cycle for immediate sales growth. Instead, Apple's focus might be on a more gradual integration of its AI innovations and a steady increase in sales over time.
