An analyst claims Apple cut production for 10 million iPhone 16 units, despite Apple Intelligence's full launch next year.

Apple shares edged lower in early Friday trading, eating in to their modestly one month advance, following a notable rating change from a top Wall Street analyst and another round of weak iPhone 16 sales data from China.

Kuo is bullish on Apple's yet-to-be-released AI features but said it would likely take new hardware iterations to grow iPhone sales.

The iPhone 16 launched without Apple Intelligence AI. Will its imminent debut level the playing field with Android, or is it too little too late

According to Kuo, the order cut was due to a worse product mix expected in the first half of 2025 and uncertainty about iPhone revenues. This comes in line with expectations of the release of the iPhone SE 4, which, although usually cheaper, does not receive an annual update, which might change the balance in the market.

Apple has reduced its iPhone 16 sales expectations, says analyst Ming-Chi Kuo. The lack of significant AI features is a contributing factor to this decision, impacting production and revenue forecasts.

Apple shares slid Wednesday after industry supply chain analyst Ming-Chi Kuo said the company has cut orders for the iPhone 16 by about 10 million units.