Apple stock fell Wednesday after a noted analyst reported that the consumer electronics giant has cut orders for its iPhone 16 smartphones.
In a blog post, TF International Securities analyst Ming-Chi Kuo said Apple cut its iPhone 16 orders by about 10 million units for the fourth quarter and first half of 2025. The cuts were mostly for the standard-model handsets, not the premium Pro models, he said.
"As a result, iPhone 16 production for second-half 2024 is now estimated at 84 million units (down from around 88 million previously)," Kuo said.
IPhone 16 production for the fourth quarter is now forecast at 80 million units, vs. the prior estimate of 84 million units, he said. First-quarter 2025 production is now seen at 45 million units, down from 48 million previously. Second-quarter 2025 production estimates go to 39 million units from the earlier target of 41 million, Kuo said.
Kuo said he has seen no evidence yet that Apple Intelligence, Apple's take on artificial intelligence, is boosting iPhone shipments in the near term.
Meanwhile, Apple plans to start production of its new entry-level smartphone, the iPhone SE 4, in December, Kuo said. He predicted Apple will produce about 8.6 million units of the new handset from December 2024 through the first quarter of 2025.
Apple Stock Retreats On Analyst Report
Earlier this week, several Wall Street analysts said their supply-chain checks had shown solid demand for iPhone 16 smartphones.
On the stock market today, Apple stock slid 2.2% to close at 230.76.
Apple stock has an IBD Composite Rating of 94 out of 99, according to IBD Stock Checkup. IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
The Cupertino, Calif.-based company is due to report its September-quarter results on Oct. 31. The iPhone 16 series smartphones went on sale on Sept. 20.
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