The launch of Apple’s new iPhone 16 series has raised concerns among analysts as the demand for the Pro models seems weaker than expected. Shares of Apple dropped nearly 3% following the announcement, as analysts pointed to shorter delivery times for the new models. The delay in rolling out key artificial intelligence features, a major selling point for the new iPhones, may be one reason for the lukewarm demand.
The iPhone 16 series is designed around Apple Intelligence, the company’s AI software. Pre-order data from BofA Global Research revealed that shipping times for the new Pro models are shorter compared to last year’s models. The average ship time for the iPhone 16 Pro is 14 days, down from 24 days for the iPhone 15 Pro, while the ship time for the iPhone 16 Pro Max is 19 days, compared to 32 days last year. This indicates that the supply chains for the Pro models may have improved since last year.
Analyst Ming-Chi Kuo raised concerns about the lower-than-expected demand for the iPhone 16 Pro series, attributing it to the delayed availability of Apple Intelligence. The AI software is set to be available in beta only for the U.S. version of English next month, with other versions potentially waiting until next year. This delay has made some customers hesitant to upgrade to the new iPhone 16 series, impacting first-weekend pre-order sales, which were down 27% for the Pro model and 16% for the Pro Max model.
Despite concerns about weak demand, analyst Wamsi Mohan believes that the shorter ship times for the new Pro models may also be a result of Apple’s improved supply chains. Last year, supply issues with the tetraprism lens affected the shipping of the iPhone 15 Pro Max, but this year’s models seem to be benefiting from a more efficient supply chain. This suggests that the lower ship times may not solely be due to weak demand but could also be a positive indicator of Apple’s production capabilities.
Overall, the concerns raised by analysts about the demand for the iPhone 16 Pro series stem from the delayed availability of Apple Intelligence. The AI software is a key selling point for the new models, and its absence at launch may be deterring some customers from upgrading. While the shorter shipping times for the new Pro models could indicate an improvement in Apple’s supply chains, the impact of the delayed AI features on consumer demand remains a significant factor to watch in the coming months.It will be interesting to see how Apple addresses these concerns and whether the delayed rollout of Apple Intelligence will have a long-term impact on the sales of the new iPhone 16 series.
