Apple Equities Decline Amid Observations of Sluggish iPhone 16 Sales
Apple’s stock has decreased by 3.2% during Monday’s afternoon trading session following reports of lower-than-anticipated demand for the newly launched iPhone 16. Analyst Ming-Chi Kuo from TF Securities highlighted that the sales figures for the iPhone 16 are 12% lower year-over-year compared to the initial weekend sales of its predecessor, the iPhone 15.
Kuo emphasized that the primary reason for this subdued demand is the underwhelming interest in the iPhone 16 Pro series. This assessment was made based on data collected from Apple’s website regarding pre-order sales, delivery timelines, and shipments prior to the pre-order phase.
Analysts from Barclays, JPMorgan, and Bank of America expressed concerns over the lighter demand projected for the latest iPhone Pro models, largely influenced by the elongated shipping times compared to the previous year’s models.
During a launch event at their Cupertino headquarters in California last Monday, Apple introduced a range of new products including the iPhone, AirPods, and Apple Watch. While pre-orders for the iPhone 16 began last Friday with a slated release date of September 20, the full integration of Apple Intelligence features is expected to roll out in a beta version next month.
Barclays analysts observed dwindling pre-order numbers for the Pro models in comparison to the base and plus variants. Meanwhile, JPMorgan analysis of early lead times suggested a consistent demand for the base models but a softer trend for the Pro models, as compared to the iPhone 15 series.
According to BofA analysts, the extended shipping times for the iPhone 16 Pro and Pro Max models are slightly less severe compared to the same period in the previous year’s pre-order phase. Factors such as supply, inventory, allocation, and pricing were cited as potential influencers on the shipping schedules.
Apple adjusted the pricing of the iPhone 16 in select markets like Australia and India, alongside offering discounts to bolster sales figures. The Pro models, which come with advanced screens and cameras, start at $999 and $1,199 for the Pro and Pro Max variations, respectively.
Apple’s event also highlighted features such as the thin borders on the Pro models, making them the most visually appealing iPhone yet. The use of titanium in these models was emphasized for its lightweight and scratch-resistant properties, distinguishing them from previous iterations.
While the sales outlook for the iPhone 16 remains uncertain, Apple continues to navigate market challenges and stiff competition, particularly within the Chinese market, as it strives to sustain its position as a leading player in the tech industry.
— reporting by Michael Bloom from good
