Apple shares fell by over 3% on Monday. Analysts noted that the new iPhone 16 Pro models had shorter delivery times, indicating lower-than-expected demand. This drop in demand might be linked to the delayed release of key artificial intelligence technologies.
The much anticipated iPhone 16 series, built around Apple Intelligence AI software, was presented by the company last week.
As of Monday, three days after Apple began accepting preorders, early data from BofA Global Research revealed a notable trend. Compared to the iPhone 15 Pro models from the previous year, the iPhone 16 Pro models now have lower worldwide shipping dates.
The statistics showed that the average ship time for the iPhone 16 Pro was 14 days. In contrast, the iPhone 15 Pro had a shipping time of 24 days last year. On the other hand, the iPhone 16 Pro Max’s 19-day ship time was compared to 32 days last year.
Ming-Chi Kuo, a Taiwan-based analyst at TF International Securities, stated in a blog post that “the key factor is the lower-than-expected demand for the iPhone 16 Pro series… the major selling point, Apple Intelligence, is not available at launch.”
Apple Intelligence might deter some consumers from upgrading to the iPhone 16 series. Consequently, the series will launch in beta form next month in the U.S. and later this year for other versions.
Kuo reported that the first-weekend pre-order sales of the iPhone 16 Pro and Pro Max versions had decreased by 27% and 16%, respectively.
According to Jefferies analysts, “unless Apple massively increased supply allocation,” the U.S. is much weaker than it was last year.
A few experts noted that faster shipping times may be due to increased availability of the Pro versions. Last year’s iPhone 15 Pro Max shipments faced delays because of issues with the camera lens, making this year’s release smoother in comparison.
“We are not concerned if pre-orders don’t show meaningful growth,” D.A. Davidson analyst Gil Luria said.
“The (AI) features will be rolling out gradually … which means the upgrade cycle will likely materialize over the next 12-18 months.”
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