Apple shares fall after alarming data showing weak demand for the iPhone 16

Apple shares fell nearly 3% on Monday after some analysts said delivery times for new iPhone 16 Pro models showed weaker-than-expected demand, possibly due to a delay in introducing key artificial intelligence features.

Apple last week unveiled the much-anticipated iPhone 16 series built around its AI software, Apple Intelligence.

Pre-order data from BofA Global Research revealed shorter global shipping times for iPhone 16 Pro models compared to last year’s 15 Pro models as of Monday, three days after the company began taking pre-orders.

The average delivery time for the iPhone 16 Pro was currently 14 days, down from 24 days for the iPhone 15 Pro last year, the data showed, while the 19-day delivery time for the iPhone 16 Pro Max compared with 32 days last year. . .

“The main factor is the lower-than-expected demand for the iPhone 16 Pro series … the main selling point, Apple Intelligence, is not available at the launch alongside the release of the iPhone 16,” said Ming-Chi Kuo, an Apple analyst at TF . International Securities, said in a blog post.

Apple Intelligence will arrive in the US English version in beta only next month, and for other versions until the end of next year, potentially keeping some customers on the fence about upgrading to the 16 series.

Weekend pre-order sales for the iPhone 16 Pro and Pro Max models fell 27% and 16%, respectively, according to Kuo’s estimates based on each model’s delivery time and production plans.

“The United States is much weaker than last year unless Apple massively ramps up supply distribution,” Jefferies analysts said.

To be sure, some analysts also said that improved supply of the Pro models could have led to shorter shipping times this time around, as supply issues with a camera lens affected shipments for the iPhone 15 Pro Max last year.

“We’re not concerned if pre-orders don’t show meaningful growth,” said DA Davidson analyst Gil Luria.

“The (AI) features will roll out gradually … meaning the upgrade cycle will likely materialize over the next 12-18 months.”