Apple’s stock tumbled nearly 3% on Monday following concerns that the new iPhone 16 Pro models are seeing softer demand than anticipated. Several analysts noted that delivery times for the latest iPhones are shorter compared to last year's iPhone 15 Pro, which may signal weaker consumer interest. The likely cause is the delayed rollout of Apple’s highly anticipated artificial intelligence (AI) feature, Apple Intelligence, which was meant to be a key selling point of the new iPhone series.
Early pre-order data from BofA Global Research showed that shipping times for the iPhone 16 Pro averaged 14 days, a significant drop from the 24-day wait time for the iPhone 15 Pro. The iPhone 16 Pro Max saw a ship time of 19 days, compared to 32 days for the iPhone 15 Pro Max last year. This difference has raised concerns about demand for the new models.
Prominent Apple analyst Ming-Chi Kuo of TF International Securities highlighted that the iPhone 16 Pro’s AI-driven features, branded as Apple Intelligence, are not available at launch, with the beta version for U.S. users expected next month. The delay in introducing these AI functionalities may have discouraged potential buyers from upgrading. Kuo estimated that first-weekend pre-orders for the iPhone 16 Pro and Pro Max were down by 27% and 16%, respectively, compared to last year's models.
However, BofA analyst Wamsi Mohan suggested that the shorter shipping times could also indicate an improvement in Apple’s supply chain for the Pro models, noting that last year’s shipping delays were partly due to supply issues with the tetraprism lens used in the iPhone 15 Pro Max.
As Apple continues to push AI advancements as a core part of its product offerings, the company will need to address these early concerns to sustain long-term demand for the iPhone 16 series.
Early pre-order data from BofA Global Research showed that shipping times for the iPhone 16 Pro averaged 14 days, a significant drop from the 24-day wait time for the iPhone 15 Pro. The iPhone 16 Pro Max saw a ship time of 19 days, compared to 32 days for the iPhone 15 Pro Max last year. This difference has raised concerns about demand for the new models.
Prominent Apple analyst Ming-Chi Kuo of TF International Securities highlighted that the iPhone 16 Pro’s AI-driven features, branded as Apple Intelligence, are not available at launch, with the beta version for U.S. users expected next month. The delay in introducing these AI functionalities may have discouraged potential buyers from upgrading. Kuo estimated that first-weekend pre-orders for the iPhone 16 Pro and Pro Max were down by 27% and 16%, respectively, compared to last year's models.
However, BofA analyst Wamsi Mohan suggested that the shorter shipping times could also indicate an improvement in Apple’s supply chain for the Pro models, noting that last year’s shipping delays were partly due to supply issues with the tetraprism lens used in the iPhone 15 Pro Max.
As Apple continues to push AI advancements as a core part of its product offerings, the company will need to address these early concerns to sustain long-term demand for the iPhone 16 series.