As more sales data is confirmed, analysts have revised their projections for iPhone 16 sales. In particular, iPhone 16 Pro sales in China have surged by 44%. However, at this juncture, Apple analyst Ming-Chi Kuo revealed that Apple plans to cancel 10 million iPhone 16 orders. Why is it that while iPhone 16 Pro is selling like hotcakes, Apple is canceling orders?

Apple has been generous with the iPhone 16 this year, equipping all models with the A18 processor, and even increasing the memory of the lower-end iPhone 16 and iPhone 16 Plus by 2GB, while keeping the starting price at just RMB 5,999. Under these circumstances, Apple hopes to achieve significant growth in iPhone 16 sales.

While Kuo's revelation of 10 million canceled iPhone 16 orders may seem alarming, he also shared positive news for Apple. He estimates that iPhone 16 sales will reach 84 million units in the fourth quarter of this year, a significant increase from the 71.8 million units sold in the same quarter last year.

Analyst Ming-Chi Kuo believes that overall iPhone 16 sales are on the rise. However, similar to the iPhone 15, the lower-end standard iPhone 16 is still not popular among consumers. More customers are opting for the iPhone 16 Pro series, driving significant growth in its sales and contributing to the overall increase in iPhone 16 sales.

The canceled orders primarily involve the lower-end iPhone 16 and iPhone 16 Plus, as Apple's hopes for increased sales of these models have not materialized. Consequently, Apple has had to reduce orders for these models while simultaneously increasing orders for the highly popular iPhone 16 Pro.

This outcome stems from Apple's nuanced approach. While all iPhone 16 models feature the A18 processor, there are differences. The standard A18 processor offers only limited performance improvements over the A17, essentially serving as an enhanced version. In contrast, the A18 Pro processor in the iPhone 16 Pro is a completely new design, offering significantly superior performance.

The more significant impact on consumers lies in the design. The iPhone 16 features a dual-camera setup with a traffic light-style camera module, while the iPhone 16 Pro boasts a square triple-camera module. This stark design difference is crucial for consumers who prioritize aesthetics, leading some to prefer the iPhone 16 Pro even if it costs an additional RMB 2,000. For high-end consumers, the price difference is not a concern.

This camera design also contributes to performance disparities between the iPhone 16 Pro and iPhone 16 in photography. The iPhone 16 Pro boasts a 48-megapixel main camera, a 48-megapixel ultra-wide-angle camera, and a 12-megapixel 3x optical zoom lens. In contrast, the iPhone 16 has a 48-megapixel main camera and a 12-megapixel ultra-wide-angle camera. Unsurprisingly, the iPhone 16 Pro offers superior photography capabilities.

Given these circumstances, it is natural that iPhone 16 sales may struggle to meet expectations. As Apple's plans for increased sales of the standard iPhone 16 fall short, the company is forced to cancel orders. Meanwhile, the overwhelming popularity of the iPhone 16 Pro necessitates further orders, driving overall iPhone 16 sales growth.

The industry had hoped that domestic smartphone makers could challenge Apple in the premium market with Qualcomm's new Snapdragon 8 Gen 3 chip. However, Qualcomm's price hike, pushing chip costs to over RMB 1,700, has led to rumors of price increases for flagship domestic phones. This may inadvertently drive more consumers towards the iPhone 16, boosting its overall sales.