Apple iPhone 16 Demand in favor of: Apple Inc. shares fell nearly 3 percent on Monday on analyst concerns that shorter shipping times for newly launched iPhone The appearance of 16 Pro models may indicate lower-than-expected demand. The drop is partly attributed to the delay in the launch of key artificial intelligence (AI) features in the latest iPhone series.
Last week, Apple presented its highly anticipated iPhone 16 series, highlighting its new artificial intelligence software, Apple Intelligence. However, early pre-order data from BofA Global Research showed that shipping times for the iPhone 16 Pro models are shorter compared to last year’s iPhone 15 Pro models. This raised concerns about the level of consumer interest in the new phones.
According to the data, the average shipping time for the iPhone The iPhone 16 Pro delivery time is currently 14 days, significantly shorter than the 24 days expected for last year’s iPhone 15 Pro. Similarly, the iPhone 16 Pro Max has a shipping time of 19 days, compared to 32 days for the Pro Max model in 2022.
Ming-Chi Kuo, an analyst at TF International Securities, noted that lower-than-expected demand for the iPhone The 16 Pro series could be due to the fact that Apple Artificial intelligence, a major draw of the new phones, is not available at launch. The AI feature is expected to launch in the US next month in an English-language beta, with other versions delayed until next year, which could discourage some customers from upgrading right away.
Kuo also reported a decline in first weekend pre-order sales for the iPhone 16 Pro and Pro Max models, down 27 percent and 16 percent, respectively.
Analysts at Jefferies echoed the sentiment, stating: “The US market is showing weaker demand compared to last year unless… Apple significantly increased the allocation of supply.”
However, some analysts suggested that better supply chain management could be contributing to the shorter shipping times. Last year, supply issues with a camera lens affected camera availability. iPhone 15 Pro Max, which might not be the case this year.
DA Davidson analyst Gil Luria commented: “We are not concerned that pre-orders will not show significant growth. AI features will be rolled out gradually, meaning the upgrade cycle is likely to materialise over the next 12 to 18 months.”
As Apple continues with the rollout of AI, investors will be watching closely to see how new features impact long-term demand for the iPhone Series 16.
(With contributions from Reuters.)
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