Apple stock fell sharply on Wednesday. Reports about cuts in iPhone 16 production and Vision Pro scaling issues triggered the decline. The company’s shares dropped 3%, compared to the Nasdaq 100’s 2% fall. Trading closed at $229.50 as investors worried about AI features and hardware sales performance in global markets.
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Apple CEO Addresses Stock Tumble Amid iPhone 16 Order Cuts and Vision Pro Changes
iPhone Production Cuts Signal AI Concerns
Analyst Ming-Chi Kuo reports Apple cut iPhone 16 orders by 10 million units. These cuts affect Q4 2024 and H1 2025 production. Market analysts view this reduction as a significant shift in Apple’s production strategy, impacting Apple stock forecast.
Kuo states: “However, iPhone revenues are expected to come under pressure in 1H25 due to a YoY shipment decline and a less favorable product mix due to the launch of the SE4.”
Software chief Craig Federighi spoke about these challenges:
“This is a big lift, and we feel like we want to get it right,” adding, “This isn’t a one-and-done kind of situation. This is a many year, honestly even decades-long arc of this technology playing out.” The approaches could also affect Apple stock over time.
Vision Pro Strategy Shift
Apple plans to reduce Vision Pro production. The current $3,500 model might stop production by year-end. The company has parts for 600,000 headsets, and this production decision impacts Apple stock outlook.
Assembly could stop in November. A cheaper model is planned for late 2025. Industry experts suggest this move responds to consumer feedback about pricing barriers.
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Mixed Market Signals
Kuo sees potential despite current issues:
“Significant growth in iPhone shipments will likely require further hardware innovation to accompany this AI development.” Such advancements could be promising for Apple stock.
The new iPhone SE4 launches in Q1 2025. Priced at $500, it might affect iPhone 16 sales. Supply chain partners have started adjusting their production schedules accordingly. This new release could influence Apple stock trends as well.
Cook’s China Strategy
CEO Tim Cook met with officials in Beijing. He emphasized Apple’s commitment to the region amid ongoing market challenges. “Apple is keen to seize the opportunities presented by China’s opening up and will continue to increase its investment in the country, thus contributing to the high-quality development of the industrial and supply chains,” Cook told Xinhua. How this strategy will impact Apple stock remains to be seen.
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