The news: Apple, which plans to release its first Apple Intelligence AI features in late October, is reportedly cutting iPhone 16 production by 3 million units—a 15% YoY reduction, per Barclays.
Barclays’ findings, which it based on supply channel checks, could indicate that consumer interest in the latest iPhones is waning, with some considering the announced but missing features to be vaporware.
Why it’s worth watching: The shift to generative AI (genAI) has challenged Apple’s annual product release cadence, indicating that integrating AI features into existing products requires far more time than a year.