Apple's quarterly earnings report or reputable financial news sources

Apple Cuts iPhone 16 Production by 3M Units Amid Weak Demand, Stock Down 1.31%

Oct 1, 2024, 11:47 AM

Barclays has reported that Apple Inc. ($AAPL) is cutting production of the iPhone 16, citing weak demand. The bank's supply chain checks indicate that Apple may have reduced production by approximately 3 million units for the December quarter, including cuts at a key semiconductor component. This move is significant as it represents the earliest build cut in recent history, with a reported 15% year-over-year decline in the first week of sales. The report has led to a pre-market decline in Apple's stock, which was down 1.31% at the time of reporting. Barclays has maintained an 'Underweight' rating on Apple with a price target of $186, reflecting concerns over the weak demand for the new iPhone model. The weak demand follows the introduction of Apple Intelligence, which had initially boosted expectations for iPhone builds in early July.