Apple shares fell on Monday as reports indicated that the demand for iPhone 16 is less than anticipated, to be down 12% year over year from the first-weekend sales of the iPhone 15 in the same period last year, according to TF Securities analyst Ming-Chi Kuo.
In particular, Kuo noted that Apple Intelligence, one more major advantage of new models presented at the event last week, will become available only in the beta version next month.
Bank of America and JPMorgan analysts in the notes to the investors also added that shipping times could mean lighter sales of the latest iPhone Pro models compared to the previous year.
Apple Inc. ’s stocks dropped to the lowest level within the previous twenty four hours by almost 2 percent. It fell to 8% on Monday, following decreased demand for the new iPhone 16 and first-weekend sales that are 12% lower than the iPhone 15 last year, according to TF Securities analyst Ming-Chi Kuo.
Kuo noted that the main issue is the weaker demand for the iPhone 16 Pro models based on the data obtained from Apple’s websites regarding the pre-order sales, average delivery times and the shipment before pre-order.
According to Kuo, another reason for the lower demand is that the “major selling point, Apple Intelligence, will not be available at the launch of the iPhone 16. ” Another factor is still the competition in the Chinese market that affect the iPhone demand.
Last Monday, Apple introduced the new models of the iPhone, AirPods and Apple Watch at an event at the company’s campus in Cupertino, California. Orders for the new iPhones started on Friday and the devices will be available from September 20, however, the first Apple Intelligence features for iPhone 16 will not be available until next month in its beta version.
Barclays, JPMorgan and Bank of America also reported in their notes to investors that the shipping times meant that there would be less demand for the latest models of iPhone Pro as compared to the previous year.
In a note, Barclays analysts explained that according to the discussions with distributors and data on first few days’ pre-order figures on China’s leading e-commerce platforms, the total number of pre-orders was lower YoY, with a lower pro model split. ”It was understood that pro model units were declining in the double digit on YoY basis while base and plus models were growing YoY. ”
The Barclays analysts explained that Apple Intelligence in the Chinese language is not going to be available until CY2025 which may hinder the early interest in IP16.
In their report, the JPMorgan analysts pointed out that “early lead-times are indicating demand on the iPhone 16 base models in-line to the iPhone 15 series during Week 1 (e. g. , Pre-Order Week), while early demand indicators for Pro models are starting off modestly softer relative to the iPhone 15 series.
”BofA analysts wrote that based on tracking iPhone ship dates on Apple’s website and carrier websites, ship time is “still delayed for iPhone 16 Pro and Pro Max models but not as much (on average) compared to last year at this stage of the pre-order period. ”
As for the extension of ship dates, the company noted that “while the stretching of iPhone shipment could be a sign of iPhone demand, supply, inventory, allocation and pricing could also be the cause of the stretched ship dates. ” The analysts also noted that Apple had cut the prices of iPhone 16 in Australia and India.
The iPhone 16 Pro and the iPhone 16 Pro Max are iPhone’s high end phones that have better screens and cameras than the standard models at $999 and $1,199 respectively.
The Pro models have the “smallest frames ever on an iPhone,” Apple stated last week, describing them as “by far the best iPhone displays we have ever made. ” The titanium is nearly half lighter than stainless steel and is “more scratch resistant than other forms of titanium that others have used. “
As a part of unveiling the new iPhone, the company said the new iPhone 16 Pro Max has “the best iPhone battery life ever” but gave no further information.
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