Apple does not appear to have increased iPhone 16 orders despite earlier reports suggesting a potential super cycle driven by new AI features.
According to Apple analyst Ming-Chi Kuo, recent earnings reports from Apple suppliers TSMC and Largan indicate no significant growth in unit orders. TSMC reported no increase in unit growth, while Largan’s orders for high-end models in 2024 remain similar to last year, implying that Apple’s iPhone 16 orders for the latter half of 2024 are around 87 million units, lower than the 91 million iPhone 15 units ordered in 2023.
One of the major features expected to boost iPhone 16 sales is Apple Intelligence, an AI suite offering new capabilities such as Writing Tools, Image Playground, and Genmoji, along with a significant overhaul to Siri. However, Kuo suggests that expectations for Apple Intelligence driving iPhone 16 sales might be overly optimistic. The feature will only be available in beta for U.S. users and support English exclusively upon release. This limited availability could hinder its impact on global sales.
Additionally, the iPhone 16 is rumored to introduce several new hardware features. Reports suggest that all iPhone 16 models will include an Action button, previously exclusive to the Pro models, and a new Capture button designed for quick access to the camera. The iPhone 16 lineup will also feature slimmer bezels and improved display technology, with the Pro models expected to have the thinnest bezels of any smartphone. The rear glass will have a frosted effect, and new colors such as rose gold are anticipated for the Pro models.
Despite these enhancements, Kuo notes that certain suppliers may have been asked to increase production for specific reasons unrelated to overall unit growth. He also cautions that the expectation for consumers to upgrade for the beta version of Apple Intelligence alone may not be realistic. Bloomberg had previously suggested that Apple was counting on iOS 18 AI features to boost iPhone shipments by 10% in 2024, but this target now seems uncertain.
