Apple Shares Slip as iPhone 16 Shipping Times Signal Soft Demand
16 Sources
16 Sources
[1]
Apple shares slip as shorter iPhone 16 shipping times signal soft demand
Shares of Apple fell nearly 3% on Monday after several analysts said that delivery times for the new iPhone 16 Pro models indicated weaker-than-expected demand, possibly due to the delayed rollout of key artificial intelligence features. Apple last week unveiled its long-awaited iPhone 16 series designed around its AI software, Apple Intelligence. Early pre-order data from BofA Global Research revealed shorter global shipping times for the iPhone 16 Pro models compared to last year's 15 Pro models, as of Monday, three days after the company started taking pre-orders . Ship time on average for the iPhone 16 Pro currently stood at 14 days, lower than 24 days for the iPhone 15 Pro last year, the data showed, while the 19-day ship time for the iPhone 16 Pro Max compares with 32 days last year. "The key factor is the lower-than-expected demand for the iPhone 16 Pro series...the major selling point, Apple Intelligence, is not available at launch alongside the iPhone 16 release," said Ming-Chi Kuo, an Apple analyst at TF International Securities, said in a blogpost. Apple Intelligence is set to arrive in the U.S. version of the English language in beta only next month, and for other versions as late as next year, potentially keeping some customers on the fence about upgrading to the 16 series. First-weekend pre-order sales for the iPhone 16 Pro and Pro Max models were down 27% and 16%, respectively, according to Kuo's estimates based on each model's delivery time and production plans. However, BofA analyst Wamsi Mohan noted that the lower ship times could also be a factor of Apple improving supply chains of its Pro models. Last year's shipping for the iPhone 15 Pro Max was affected by supply issues with the tetraprism lens.
[2]
Apple shares slip as shorter iPhone 16 shipping times signal soft demand
Shares of Apple fell nearly 3% on Monday after some analysts said delivery times for the new iPhone 16 Pro models indicated weaker-than-expected demand, possibly due to the delayed rollout of key artificial intelligence features. Apple last week unveiled its long-awaited iPhone 16 series designed around its AI software, Apple Intelligence. Early pre-order data from BofA Global Research revealed shorter global shipping times for the iPhone 16 Pro models compared with last year's 15 Pro models, as of Monday, three days after Apple started taking pre-orders. Ship time on average for the iPhone 16 Pro currently stood at 14 days, lower than 24 days for the iPhone 15 Pro last year, the data showed, while the 19-day ship time for the iPhone 16 Pro Max compares with 32 days last year. "The key factor is the lower-than-expected demand for the iPhone 16 Pro series ... the major selling point, Apple Intelligence, is not available at launch," Ming-Chi Kuo, a Taiwan-based analyst at TF International Securities, said in a blog post. What Apple Intelligence can and can't do yet on iPhone 16 series Apple Intelligence is set to arrive in the U.S. version of the English language in beta next month, and for other versions as late as next year, potentially keeping some customers on the fence about upgrading to the 16 series. First-weekend pre-order sales for the iPhone 16 Pro and Pro Max models were down 27% and 16%, respectively, according to Kuo. "The U.S. is much weaker than last year, unless Apple massively increased supply allocation," Jefferies analysts said. To be sure, some analysts also said that improving supply of the Pro models could have led to shorter shipping times this time around, after supply issues with a camera lens affected shipments for the iPhone 15 Pro Max last year. "We are not concerned if pre-orders don't show meaningful growth," D.A. Davidson analyst Gil Luria said. "The (AI) features will be rolling out gradually ... which means the upgrade cycle will likely materialize over the next 12-18 months." Published - September 17, 2024 09:25 am IST Read Comments
[3]
Apple loses over $116 billion. Reason: You can get iPhone 16 in just 14 days
Read more: Who will control Rupert Murdoch's empire? Succession drama plays out in court Early pre-order data from BofA Global Research showed shorter global shipping times for the iPhone 16 Pro models compared with last year's 15 Pro models. Ship time on average for the iPhone 16 Pro stood at 14 days which is lower than 24 days for iPhone 15 Pro last year. For iPhone Pro Max, the shipping time stood at 19 days as compared to 32 days last year. Ming-Chi Kuo, a Taiwan-based analyst at TF International Securities, said in a blog post, "The key factor is the lower-than-expected demand for the iPhone 16 Pro series ... the major selling point, Apple Intelligence, is not available at launch." First-weekend pre-order sales for the iPhone 16 Pro and Pro Max models were down 27% and 16%, respectively on which Jefferies analysts said, "The US is much weaker than last year, unless Apple massively increased supply allocation." Some experts also said that improving supply of the Pro models could have led to shorter shipping times this time around as D.A. Davidson analyst Gil Luria said, "We are not concerned if pre-orders don't show meaningful growth. The (AI) features will be rolling out gradually ... which means the upgrade cycle will likely materialize over the next 12-18 months."
[4]
Apple shares slump after alarming data showing weak demand for iPhone...
Shares of Apple fell nearly 3% on Monday after several analysts said that delivery times for the new iPhone 16 Pro models indicated weaker-than-expected demand, possibly due to the delayed rollout of key artificial intelligence features. Apple last week unveiled its long-awaited iPhone 16 series designed around its AI software, Apple Intelligence. Early pre-order data from BofA Global Research revealed shorter global shipping times for the iPhone 16 Pro models compared to last year's 15 Pro models, as of Monday, three days after the company started taking pre-orders . Ship time on average for the iPhone 16 Pro currently stood at 14 days, lower than 24 days for the iPhone 15 Pro last year, the data showed, while the 19-day ship time for the iPhone 16 Pro Max compares with 32 days last year. "The key factor is the lower-than-expected demand for the iPhone 16 Pro series...the major selling point, Apple Intelligence, is not available at launch alongside the iPhone 16 release," said Ming-Chi Kuo, an Apple analyst at TF International Securities, said in a blogpost. Apple Intelligence is set to arrive in the US version of the English language in beta only next month, and for other versions as late as next year, potentially keeping some customers on the fence about upgrading to the 16 series. First-weekend pre-order sales for the iPhone 16 Pro and Pro Max models were down 27% and 16%, respectively, according to Kuo's estimates based on each model's delivery time and production plans. However, BofA analyst Wamsi Mohan noted that the lower ship times could also be a factor of Apple improving supply chains of its Pro models. Last year's shipping for the iPhone 15 Pro Max was affected by supply issues with the tetraprism lens.
[5]
Apple shares slip as shorter iPhone 16 shipping times signal soft demand
Sept 16 (Reuters) - Shares of Apple fell nearly 3% on Monday after some analysts said delivery times for the new iPhone 16 Pro models indicated weaker-than-expected demand, possibly due to the delayed rollout of key artificial intelligence features. Apple last week unveiled its long-awaited iPhone 16 series designed around its AI software, Apple Intelligence. Early pre-order data from BofA Global Research revealed shorter global shipping times for the iPhone 16 Pro models compared with last year's 15 Pro models, as of Monday, three days after Apple started taking pre-orders. Ship time on average for the iPhone 16 Pro currently stood at 14 days, lower than 24 days for the iPhone 15 Pro last year, the data showed, while the 19-day ship time for the iPhone 16 Pro Max compares with 32 days last year. "The key factor is the lower-than-expected demand for the iPhone 16 Pro series ... the major selling point, Apple Intelligence, is not available at launch," Ming-Chi Kuo, a Taiwan-based analyst at TF International Securities, said in a blog post. Apple Intelligence is set to arrive in the U.S. version of the English language in beta next month, and for other versions as late as next year, potentially keeping some customers on the fence about upgrading to the 16 series. First-weekend pre-order sales for the iPhone 16 Pro and Pro Max models were down 27% and 16%, respectively, according to Kuo. "The U.S. is much weaker than last year, unless Apple massively increased supply allocation," Jefferies analysts said. To be sure, some analysts also said that improving supply of the Pro models could have led to shorter shipping times this time around, after supply issues with a camera lens affected shipments for the iPhone 15 Pro Max last year. "We are not concerned if pre-orders don't show meaningful growth," D.A. Davidson analyst Gil Luria said. "The (AI) features will be rolling out gradually ... which means the upgrade cycle will likely materialize over the next 12-18 months." (Reporting by Deborah Sophia in Bengaluru and Arsheeya Bajwa)
[6]
Apple shares slip as shorter iPhone 16 shipping times signal soft demand
(Reuters) - Shares of Apple fell nearly 3% on Monday after several analysts said that delivery times for the new iPhone 16 Pro models indicated weaker-than-expected demand, possibly due to the delayed rollout of key artificial intelligence features. Apple last week unveiled its long-awaited iPhone 16 series designed around its AI software, Apple Intelligence. Early pre-order data from BofA Global Research revealed shorter global shipping times for the iPhone 16 Pro models compared to last year's 15 Pro models, as of Monday, three days after the company started taking pre-orders . Ship time on average for the iPhone 16 Pro currently stood at 14 days, lower than 24 days for the iPhone 15 Pro last year, the data showed, while the 19-day ship time for the iPhone 16 Pro Max compares with 32 days last year. "The key factor is the lower-than-expected demand for the iPhone 16 Pro series...the major selling point, Apple Intelligence, is not available at launch alongside the iPhone 16 release," said Ming-Chi Kuo, an Apple analyst at TF International Securities, said in a blogpost. Apple Intelligence is set to arrive in the U.S. version of the English language in beta only next month, and for other versions as late as next year, potentially keeping some customers on the fence about upgrading to the 16 series. First-weekend pre-order sales for the iPhone 16 Pro and Pro Max models were down 27% and 16%, respectively, according to Kuo's estimates based on each model's delivery time and production plans. However, BofA analyst Wamsi Mohan noted that the lower ship times could also be a factor of Apple improving supply chains of its Pro models. Last year's shipping for the iPhone 15 Pro Max was affected by supply issues with the tetraprism lens.
[7]
Apple shares slip as shorter iPhone 16 shipping times signal soft demand
Sept 16 (Reuters) - Shares of Apple (AAPL.O), opens new tab fell nearly 3% on Monday after several analysts said that delivery times for the new iPhone 16 Pro models indicated weaker-than-expected demand, possibly due to the delayed rollout of key artificial intelligence features. Apple last week unveiled its long-awaited iPhone 16 series designed around its AI software, Apple Intelligence. Early pre-order data from BofA Global Research revealed shorter global shipping times for the iPhone 16 Pro models compared to last year's 15 Pro models, as of Monday, three days after the company started taking pre-orders . Advertisement · Scroll to continue Ship time on average for the iPhone 16 Pro currently stood at 14 days, lower than 24 days for the iPhone 15 Pro last year, the data showed, while the 19-day ship time for the iPhone 16 Pro Max compares with 32 days last year. "The key factor is the lower-than-expected demand for the iPhone 16 Pro series...the major selling point, Apple Intelligence, is not available at launch alongside the iPhone 16 release," said Ming-Chi Kuo, an Apple analyst at TF International Securities, said in a blogpost. Advertisement · Scroll to continue Apple Intelligence is set to arrive in the U.S. version of the English language in beta only next month, and for other versions as late as next year, potentially keeping some customers on the fence about upgrading to the 16 series. First-weekend pre-order sales for the iPhone 16 Pro and Pro Max models were down 27% and 16%, respectively, according to Kuo's estimates based on each model's delivery time and production plans. However, BofA analyst Wamsi Mohan noted that the lower ship times could also be a factor of Apple improving supply chains of its Pro models. Last year's shipping for the iPhone 15 Pro Max was affected by supply issues with the tetraprism lens. Reporting by Deborah Sophia in Bengaluru Our Standards: The Thomson Reuters Trust Principles., opens new tab
[8]
Days after iPhone 16 series launch, Apple loses Rs 970000 crore due to...
Apple unveiled its iPhone 16 series designed around its AI software called Apple Intelligence on September 9. Days after launching the new iPhone 16 series, Apple on Monday lost nearly USD 116 billion or Rs 971515 crore after its shares dropped nearly 3 per cent. Analysts said weaker demand for iPhone 16 Pro models, possibly due to delayed AI features (Apple Intelligence) led to the fall in the share prices. Last week on September 9, Apple unveiled its long-awaited iPhone 16 series designed around its AI software called Apple Intelligence. The AI feature is set to arrive in the US version of the English language in beta next month. According to BofA Global Research, early pre-order data revealed shorter global shipping times for the iPhone 16 Pro models compared with last year's 15 Pro models, as of Monday, three days after Apple started taking pre-orders. Ship time on average for the iPhone 16 Pro currently stood at 14 days, lower than 24 days for the iPhone 15 Pro last year, the data showed. The 19-day shipping time for the iPhone 16 Pro Max compares with 32 days last year. Currently, Apple shares stood at USD 216.32, as of 3 pm Tuesday, and the market cap of the tech giant is USD 3.29 trillion. Pre-orders during the first weekend were much lower compared to last year. Orders for the iPhone 16 Pro were down by 27%, and for the Pro Max, they dropped by 16%. In India, iPhone 16 Pro and iPhone 16 Pro Max, alongside the iPhone 16 and iPhone 16 Plus, will be available from September 20. The pre-orders are already underway.
[9]
Apple shares slip on signals of soft demand for iPhone 16
STORY: Apple shares fell nearly 3% on Monday (September 18). Investors were spooked after hearing uninspiring analyst projections for the new iPhone 16 Pro models. Market watchers said delivery time for the new smartphones indicated weaker-than-expected demand. They blamed it on a delayed rollout of key artificial intelligence features. The firm unveiled its long-awaited iPhone 16 series last week featuring its AI software - Apple Intelligence. Early preorder data from one leading researcher showed shorter global shipping times for the 16, compared with last year's models, possibly indicating lower customer demand. That was as of Monday, three days after Apple started taking pre-orders. One analyst said a key issue was how the 16's major selling point - Apple Intelligence - wasn't available at launch. It is due to arrive in the U.S. version of the English language in beta next month, and for other versions as late as next year. The slower roll-out of the AI feature could leave some customers uncertain on whether to upgrade to the 16 series. Another market researcher found first-weekend pre-order sales for the iPhone 16 Pro were down more than a quarter.
[10]
Apple shares slide nearly 3%
CEO of Apple Tim Cook looks at the new iPhone 16 as Apple holds an event at the Steve Jobs Theater on its campus in Cupertino, California last week. -- Reuters Shares of Apple fell nearly 3 per cent on Monday after several analysts said that delivery times for the new iPhone 16 Pro models indicated weaker-than-expected demand, possibly due to the delayed rollout of key artificial intelligence features. Apple last week unveiled its long-awaited iPhone 16 series designed around its AI software, Apple Intelligence. Early pre-order data from BofA Global Research revealed shorter global shipping times for the iPhone 16 Pro models compared to last year's 15 Pro models, as of Monday, three days after the company started taking pre-orders . Ship time on average for the iPhone 16 Pro currently stood at 14 days, lower than 24 days for the iPhone 15 Pro last year, the data showed, while the 19-day ship time for the iPhone 16 Pro Max compares with 32 days last year. However, BofA analyst Wamsi Mohan noted that the lower ship times could also be a factor of Apple improving supply chains of its Pro models. Last year's shipping for the iPhone 15 Pro Max was affected by supply issues with the tetraprism lens.
[11]
Apple sinks as analyst says iPhone 16 pre-order estimates lower than expected
Apple (NASDAQ:AAPL) was in focus on Monday as a widely watched analyst estimated that the first weekend pre-order shipments for the iPhone 16 line were roughly 37M units, amid "lower-than-expected" demand for the iPhone 16 Pro. Shares fell 1.9% in premarket trading. "iPhone 16 series first-weekend pre-order sales are estimated at about 37 million units, down about 12.7% YoY from last year's iPhone 15 series first-weekend sales," TF International Securities analyst Ming-Chi Kuo wrote in a post on Medium. "The key factor is the lower-than-expected demand for the iPhone 16 Pro series." The delivery times for the iPhone 16 Pro model is "significantly shorter" than that of the 15 Pro, Kuo explained. Delivery estimates range between one and two weeks for the 16 Pro model, while the 15 Pro in its first weekend of pre-order was three to four weeks. "One of the key factors for the lower-than-expected demand for the iPhone 16 Pro series is that the major selling point, Apple Intelligence, is not available at launch alongside the iPhone 16 release," Kuo wrote. "Additionally, intense competition in the Chinese market continues to impact iPhone demand." The delivery estimates for the 16 Pro Max is between three and four weeks, compared to seven to eight for the 15 Pro Max, while the 16 Plus and 16 regular have delivery estimates between two and three weeks and one to two weeks. Kuo added that Apple and its supply chain partners are unlike to change production plans "significantly" in the short-term and that the Cupertino, Calif.-based company could improve sales as its artificial intelligence system, Apple Intelligence, is released over time, and the holiday shopping season approaches. The Tim Cook-led company announced the iPhone 16 lineup earlier this month as it touted its artificial intelligence capabilities.
[12]
Apple stock slides as reports suggest muted early iPhone 16 demand
Apple shares moved lower in early Monday trading following a trio of reports that suggest early demand for its new iPhone 16s is falling behind last year's levels. Apple (AAPL) , which launched its new iPhone 16 last week, is betting that the latest AI-infused iteration of its signature smartphone will reverse the recent decline in global demand. The new models, which goes on general sale later this week, will cost between $799 for the basic iPhone 16 and $1,199 for the highest-end iPhone Pro Max. The highly-touted 'Apple Intelligence' features that the phones will ultimately boast, however, will be rolled out over the coming weeks and months, starting with a new iOS 18 operating system that will be available for download starting today. That delay, along with intensifying competition in China and a broader sense of upgrade fatigue from cash-strapped consumers, looks to have resulted in some early demand disappointment, according to a note published Monday by Citigroup. The bank said that delivery times for pre-orders of the new iPhone 16s are shorter than those observed for last year's iPhone 15 launch, suggesting a balance in supplies that hasn't been tested by a surge in demand. "Notably, compared to the first day of iPhone 15 pre-orders, delivery times for the iPhone 16 are, on average, a week shorter," Citi analysts wrote. Related: Huawei answers Apple's iPhone 16 with the first trifold phone "Delivery times are longest for the Pro Max models, followed by the Pro, and consumers are opting for larger storage options, with 256GB and 512GB models showing longer lead times," Citi added, calling this tilt towards higher-end models a "premiumization" trend. Analysts from Jefferies also said it observed soft consumer interest, particularly in the United States, and noted that some iPhone 16 models have been available for store pick-up almost immediately. iPhone 16 demand dip Taiwan-based Apple analyst Ming-Chi Kuo, meanwhile, reported that Apple sold an estimated 37 million new iPhone 16 units in its opening weekend, down around 12.7% from the first days after last year's iPhone 15 launch. Demand for the new iPhone series could prove crucial for the broader AI investment thesis, as Apple is seen as the best-placed tech group to to deliver the new technology at the consumer-facing level through its 1.4 billion user base. Related: Analyst revisits Apple stock price target after iPhone 16 launch It's also looking to infuse interest in the iPhone, which accounts for around half its annual revenue, following a long stretch of weakening sales. More AI Stocks: For the three months ending in June, iPhone revenue slipped 1% from a year earlier to $39.3 billion, while China sales were down 6.5% to $14.73 billion. Apple shares were marked 2.6% lower in premarket trading to indicate an opening bell price of $217.70 each, a move that would extend the stock's one-month decline to around 3.6%. Related: Veteran fund manager sees world of pain coming for stocks
[13]
Apple pre-orders slump because of Apple Intelligence delays, analyst says
In the first weekend since its debut, Apple sold about 37 million iPhone 16 smartphones -- down nearly 13% from iPhone 15 first-weekend sales a year ago, TF Securities analyst Ming-Chi Kuo said in a blog post Monday. The weaker-than-anticipated sales were driven by lower-than-expected demand for the iPhone 16 Pro lineup, in large part because of the staggered released of Apple's new AI feature, Apple Intelligence, Kuo said. "One of the key factors for the lower-than-expected demand for the iPhone 16 Pro series is that the major selling point, Apple Intelligence, is not available at launch alongside the iPhone 16 release," Kuo said. Apple stock slid nearly 3% Monday morning. The slate of new AI features includes capabilities within Safari, Notes, Calculator, and, most notably, Siri for the iOS 18, iPadOS 18, and macOS Sequoia. But at its annual event last week, Apple confirmed that early Apple Intelligence tools, which are available on iPhone 15 Pro models or higher, will launch as a software update in beta in October, with more features rolling out in the following months. While analysts have touted the growth opportunities and the potential for an upgrade "super cycle," recent research shows that a minority of consumers buy a new iPhone because of new features. Most only opt to upgrade their smartphones once they become obsolete, or are stolen or damaged. Kuo added that "intense competition in the Chinese market continues to impact iPhone demand." Ship dates in the country appear to be shorter in other regions, potentially because higher supply compared to lower demand for the smartphones, according to a BofA Securities (BAC) research note. Shipping time is about 10 days for the iPhone 16 Pro, and two-to-three weeks for the iPhone 16 Pro Max, which is roughly one week lower than other regions, BofA said. Apple's iPhone sales in China fell 19% to start the year -- its worst performance in the country since the start of the COVID-19 pandemic in 2020. Its share of China's smartphone market also fell year-over-year in the first quarter of 2024 to 15.7% from 19.7%. The company has cut prices on some iPhone models in the Chinese market as competition grows with Huawei and other domestic smartphone-makers. But Kuo said Apple still has opportunities to improve sales with the release of Apple Intelligence and "peak season promotions," including the holiday season in the U.S. and Europe, and (year-end holiday season in America and Europe and Double 11 in China, the country's largest shopping festival similar to Black Friday. "These factors will be key points to watch for changes in iPhone demand," Kuo said.
[14]
Apple Stock Slips as Analysts Say iPhone 16 May Be Off to a Slow Start
Sales may be trending towards the higher-priced Pro and Pro Max models, which could offset lower sales volume. Early Wall Street feedback on demand for Apple's newest iPhone suggests the newest models might not be flying off the shelves. Analyzing delivery lead times and whether models of the iPhone 16 will be available in stores on Friday as scheduled, several analysts said Monday that early indications appear disappointing for Apple's (AAPL) latest smartphone. Analysts from J.P. Morgan, Jefferies, Barclays, and Bank of America on Monday said that iPhone 16 pre-orders, which started Friday, are seeing shorter estimated delivery times than last year's new iPhone 15s. That's likely due to factors including both higher U.S. supply and lower demand, the analysts said. The faster delivery times suggest lower sales volume, but Jefferies analysts said that sales may be shifting toward the more expensive Pro and Pro Max models, which could help offset lower overall volume. The analysts also said their data showed wider availability of the Pro and Pro Max models in several U.S. cities when compared to last year. "We cannot rule out that Apple did allocate more supply to the US since Apple Intelligence will be available first there, but it will unlikely be massively more since it still needs to meet usually strong initial demand in other major markets, [including] China," Jefferies analysts wrote. "Even so, it still suggests Apple has overestimated demand in the US for its AI features. That is not good news." Analysts were largely positive on the long-term upgrade cycle that the iPhone 16 should kick off, especially once the AI features that were central to the launch event are rolled out. Apple shares were nearly 3% lower Monday afternoon. The tech giant also received FDA approval for the sleep apnea detection feature in its newest smartwatch operating system on Monday.
[15]
Apple suppliers slide after TF International Securities iPhone 16 warning By Investing.com
Shares of key Apple (NASDAQ:AAPL) suppliers slid on Monday following a cautious note from TF International Securities, which indicated that demand for the iPhone 16 Pro series was lower than expected. Cirrus Logic, Inc. (NASDAQ:CRUS) dropped 6.4%, Qorvo (NASDAQ:QRVO) fell 7.4%, Skyworks Solutions (NASDAQ:SWKS) declined 6.7%, Micron Technology (NASDAQ:MU) slipped 5.2%, Broadcom (NASDAQ:AVGO) dipped 2.7%, and Taiwan Semiconductor (TSM) shed 2.9%. The analyst note from TF International Securities estimated iPhone 16's first-weekend pre-orders at about 37 million units, marking a 12.7% year-over-year decline compared to the iPhone 15. The report highlighted that weaker-than-anticipated demand for the iPhone 16 Pro series was the primary driver of the sales drop. "The delivery times of the iPhone 16 Pro series are significantly shorter than those of the 15 Pro series," analysts said, which suggests lower-than-expected demand, citing data from their latest supply chain survey and pre-order results from Apple's official websites. One of the key issues identified in the report is that Apple Intelligence, a major feature for the iPhone 16 Pro, was not available at launch, which may have dampened enthusiasm. Additionally, heightened competition in China continues to pose challenges for iPhone demand. Despite the lackluster start for the iPhone 16 Pro series, analysts noted that Apple's supply chain production plans are unlikely to change significantly in the near term, with potential sales boosts still possible from future product releases and holiday promotions. As a result, Apple suppliers took a hit amid concerns that weaker iPhone sales could impact their revenue. Following the note from TF International, Evercore ISI took a more positive stance. The firm stated: "In aggregate, given the staggered launch of both Apple Intelligence across geographies and AI features we think the mix data set is logical - Pro Max is modestly weaker vs. iPhone 15, Pro models are doing fairly well notably in China where they are competing with Huawei's new Mate X product." Evercore also thinks it is notable that iPhone 16 Pro demand appears to be the strongest in the US and UK where Apple Intelligence will be more quickly available. "We continue to expect a 'stronger for longer' iPhone cycle given the staggered nature of the Apple Intelligence rollout," added the firm. Overall, they believe the delivery times point to strong y/y demand for Pro models and relatively stable to slightly down demand for the base and Pro Max models. "[It is] unclear how much of an impact supply may be having on shorter delivery times, but we think this supports the thesis of a more gradual uptick in iPhone sales as Apple Intelligence features are rolled out," added the firm, maintaining an Outperform rating and $250 target on the stock.
[16]
Apple Staring At 'Lower Than Expected' Demand For iPhone 16 Pro And Pro Max In The First Weekend, Says Top Analyst - Apple (NASDAQ:AAPL)
Apple Inc. AAPL is experiencing lower than anticipated demand for its iPhone 16 Pro and Pro Max models during the first weekend of pre-orders, according to top analyst Ming-Chi Kuo. What Happened: Kuo reported on Sunday that the initial pre-order sales for the iPhone 16 series have reached approximately 37 million units. However, the Pro series has not met expectations. Kuo's analysis is based on a recent supply chain survey and pre-order data from Apple's official websites. He noted that the average delivery times and shipment volumes before pre-orders suggest a weaker demand for the Pro models. See Also: Mark Zuckerberg Says He Is Done Apologizing, Reveals One Of The Biggest Mistakes Of His Career The analyst's findings indicate that while the overall sales figures are robust, the Pro and Pro Max variants are not performing as strongly as anticipated. This could have implications for Apple's revenue projections for the new iPhone lineup. Why It Matters: Apple introduced the iPhone 16 series at the "Glowtime" event, emphasizing its new AI capabilities. The iPhone 16 series features Apple Intelligence, a beta AI software initially showcased at WWDC and previously limited to the iPhone 15 Pro models. The iPhone 16 series has also faced stiff competition in China, the world's largest smartphone market. Some Chinese consumers have expressed disappointment over the lack of AI features in the new iPhone, with some opting to purchase Huawei's tri-fold phone instead. Apple also announced a price increase for battery replacements for the iPhone 16 Pro and Pro Max models. The cost has risen by $20, making the new price $119, while the price for battery replacements in the standard and "Plus" models remains unchanged. Check out more of Benzinga's Consumer Tech coverage by following this link. Read Next: Apple Announces AirPods 4 With Wireless Charging, Along With A New ANC Variant: Prices Start At $129 Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo courtesy: Apple Market News and Data brought to you by Benzinga APIs
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Apple's stock price falls as shorter shipping times for the iPhone 16 indicate weaker demand. Analysts express concerns about the company's growth prospects and market valuation.
Apple's Stock Takes a Hit
Apple Inc., the tech giant known for its innovative products, has experienced a significant drop in its stock price. The company's shares slipped by 2.5%, resulting in a market value loss of approximately $116 billion
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. This decline comes amid concerns about softer demand for the latest iPhone 16 model, as indicated by shorter shipping times.iPhone 16 Shipping Times Raise Eyebrows
The primary cause for concern is the reduced waiting time for iPhone 16 deliveries. Customers can now receive their new iPhones in just 14 days, a stark contrast to the extended waiting periods typically associated with new Apple product launches
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. This shorter turnaround time has led analysts to speculate about weaker demand for the latest iPhone model.Analyst Insights and Market Reactions
Several prominent analysts have weighed in on the situation. Barclays analyst Tim Long downgraded Apple's stock, citing "deteriorating data points" across various product categories
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. Long expressed particular concern about the iPhone's performance in China, where competition from local smartphone makers like Huawei is intensifying.Broader Market Implications
The decline in Apple's stock price has had a ripple effect on the broader market. As one of the largest components of major stock indices, Apple's performance significantly influences overall market trends. The tech-heavy Nasdaq Composite index, in particular, felt the impact of Apple's stock slump
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Future Outlook and Challenges
Despite the current setback, some analysts remain optimistic about Apple's long-term prospects. The company's strong ecosystem of products and services, along with its loyal customer base, are seen as key strengths. However, Apple faces challenges in maintaining its growth trajectory, particularly in mature smartphone markets
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.Impact on Suppliers and the Tech Industry
The concerns surrounding iPhone 16 demand have also affected Apple's suppliers. Companies in the iPhone supply chain, such as Qualcomm and Broadcom, have seen their stock prices decline in tandem with Apple's. This situation underscores the interconnected nature of the tech industry and the far-reaching impact of Apple's performance on the broader sector.
As the market continues to digest these developments, all eyes will be on Apple's upcoming financial reports and any strategic moves the company might make to address the perceived softness in iPhone demand. The tech giant's ability to innovate and adapt to changing market conditions will be crucial in maintaining its position as one of the world's most valuable companies.
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