Apple Intelligence marked another light bulb moment for Apple, or so they thought. Despite the promising launch of the iPhone 16 series on September 9th, the tech mogul failed to entice tech enthusiasts with its recycled “better camera and improved battery life” narrative. On Monday, Apple shares slid nearly 2.8% as reports revealed sluggish demand for the new iPhone 16. TF Securities analyst Ming-Chi Kuo noted that the iPhone 16 suffered a 12% dip year over year from the first weekend sales of the iPhone 15 in 2023.
According to Kou, a major turnoff for iPhone loyalists in 2024 is that Apple Intelligence is not available alongside the iPhone 16 release. This, coupled with innovative launches from Chinese rivals, has also severely impacted Apple’s market demand.
“Based on our conversations with distributors and analysis of pre-order figures on major Chinese e-commerce sites, total pre-order units were down Y/Y within the first couple of days, with a lower pro model mix,” Barclays analysts wrote in a note. “We heard that pro model units were down double digits on a Y/Y basis, while base and plus models grew Y/Y.” Apple’s Chinese market share dangles on a delicate thread as rival launches like the Huawei Mate XT dominate the Chinese market. The Barclays analysts added that the rollout of Apple Intelligence in the Chinese language “is not until CY2025, which may dampen early enthusiasm for IP16. Weak macro and competition continue to weigh on iPhone sales in China.”
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JPMorgan analysts noted that when assessing delivery lead times as a demand factor, early indications for the iPhone 16 base models are consistent with the iPhone 15 series during the initial week of pre-orders. However, they observed that early demand for the Pro models appears slightly lower compared to the iPhone 15 series.
On the other hand, Bank of America analysts reported that, based on their observations of ship dates on Apple’s and carrier websites, the delivery times for the iPhone 16 Pro and Pro Max models are extended, but not as significantly as they were at this stage last year. They cautioned that while extended ship dates can signal high demand, other factors such as supply constraints, inventory levels, allocation, and pricing may also influence these dates. Additionally, they noted that Apple has reduced iPhone 16 prices in Australia and India.
