KUALA LUMPUR, Oct 4 — Analysts at Barclays reveal that Apple may have cut iPhone 16 production by three million units — the earliest build reduction in recent history — which they claim is an indication of softer demand for the smartphone.
In an investor note seen by 9to5Mac, analysts at Barclays report that Apple “may have just cut” iPhone 16 production by three million units.
Analysts who based their observations through “recent supply channel checks,” say that these cuts were made at a “key semiconductor” partner for iPhone orders through the December quarter.
Barclays says that its “sell-through checks” suggest a 15% decline year-over-year for the iPhone 16 launch.
For the third quarter covering July, August and September, Barclays believes that iPhone shipments are on track for 51 million units, nothing that the iPhone 16 has two additional days of sell-through this year than the iPhone 15 last year (nine days last year versus 11 days this year).
Its December quarter, however, “looks increasingly at risk” for iPhone shipments due to the recent order cuts.
Barclays analysts also cite the “staggered rollout of Apple Intelligence,” the “limited adoption of AI outside of the US,” and the “lack of hardware differentiation” as reasons for the iPhone 16 demand issues.
Apple shares declined on Tuesday after trading near record highs at the start of the week, down nearly 4%, as tech shares and broader stock markets declined with the Barclays report.
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