Kuo: Expectation That Apple Intelligence Will Drive iPhone 16 Sales 'May Be Too Optimistic'
Apple does not appear to have increased iPhone 16 orders despite reports to the contrary, according to Apple analyst Ming-Chi Kuo. Kuo cites recent earnings reports from Apple suppliers TSMC and Largan as evidence.
TSMC recently said that it did not see an increase in unit growth, while Largan said that orders for high-end models in 2024 are similar to last year. Kuo believes that Apple's iPhone 16 orders for the second half of 2024 are around 87 million units, which is lower than the 91 million iPhone 15 units that Apple ordered in 2023.
Kuo said that certain suppliers may have been asked to increase production, but that may be related to "specific reasons within individual industries or components."
He suggests that expectations that Apple Intelligence will drive iPhone 16 sales "may be too optimistic" as the feature is available in U.S. English only.
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.
Earlier this month, Bloomberg suggested that Apple was counting on the iOS 18 AI features to boost iPhone shipments by 10 percent in 2024. Apple Intelligence requires an iPhone 15 Pro or later, so customers with an older iPhone will need to upgrade to the iPhone 16 to get the technology.
Apple Intelligence includes a long list of new capabilities, including Writing Tools for proofreading, polishing, and summarizing text, Image Playground for generating images, and Genmoji for creating custom emoji. Apple Intelligence will also be used to overhaul Siri, but the new Siri functionality isn't slated to launch until 2025.
So far, Apple has not established an AI deal for Chinese consumers, and Apple Intelligence will also not be coming to the European Union when iOS 18 launches.
Popular Stories
Apple recently teamed up with Japanese fashion brand ISSEY MIYAKE to create the iPhone Pocket, a limited-edition knitted accessory designed to carry an iPhone. However, it is now completely sold out in all countries where it was released.
iPhone Pocket became available to order on Apple's online store starting Friday, November 14, in the United States, France, China, Italy, Japan, Singapore, ...
While all Macs are now powered by Apple's custom-designed chips, a new rumor claims that Apple may rekindle its partnership with Intel, albeit in a new and limited way.
Apple supply chain analyst Ming-Chi Kuo today said Intel is expected to begin shipping Apple's lowest-end M-series chip as early as mid-2027.
Kuo said Apple plans to utilize Intel's 18A process, which is the "earliest...
Cellular carriers have always offered big savings on the newest iPhone models during the holidays, and Black Friday 2025 sales have kicked off at AT&T, Verizon, T-Mobile, and more. Right now we're tracking notable offers on the iPhone 17, iPhone 17 Pro, iPhone 17 Pro Max, and iPhone Air. For even more savings, keep an eye on older models during the holiday shopping season.
Note: MacRumors is...
Apple's online store is going down for a few hours on a rolling country-by-country basis right now, but do not get your hopes up for new products.
Apple takes its online store down for a few hours ahead of Black Friday every year to tease/prepare for its annual gift card offer with the purchase of select products. The store already went down and came back online in Australia and New Zealand, ...
We've been focusing on deals on physical products over the past few weeks, but Black Friday is also a great time of year to purchase a streaming membership. Some of the biggest services have great discounts for new and select returning members this week, including Apple TV, Disney+, Hulu, Paramount+, Peacock, and more.
Note: MacRumors is an affiliate partner with some of these vendors. When...
Apple's disappointing iPhone Air sales are causing major Chinese mobile vendors to scrap or freeze their own ultra-thin phone projects, according to reports coming out of Asia.
Since the iPhone Air launched in September, there have been reports of poor sales and manufacturing cuts, while Apple's supply chain has scaled back shipments and production.
Apple supplier Foxconn has...
Now that Black Friday is in the rearview mirror, Cyber Monday discounts have begun appearing online, and you can find popular Apple products like AirPods, iPad, Apple Watch, and more at all-time low prices. In this article, the majority of the discounts will be found on Amazon.
Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and make a purchase, we may ...
On this week's episode of The MacRumors Show, we talk through the latest rumors about Apple's upcoming iPad mini 8.
Subscribe to The MacRumors Show YouTube channel for more videos
The next-generation version of the iPad mini is expected to feature an OLED display, as part of Apple's plan to expand the display technology across many more of its devices. Apple's first OLED device was the Apple...
