iPhone 16’s launch is haunting Apple Inc., as shares of the technology giant slipped close to 3% following reports of weaker-than-expected demand. The last statistics reported that pre-order sales for the iPhone 16 Pro and Pro Max during the first weekend were 27% and 16% less, respectively, compared to last year's sales of the iPhone 15.
According to Analyst Ming-Chi Kuo from TF International Securities in a blog post pointed out a very critical reason for this drop in sales, the delayed launch of Apple Intelligence. The highly anticipated artificial intelligence feature, the iPhone 16 boasts but doesn’t have as of now.
Shipping time for the new iPhone 16 Pro models is much shorter than the same of last year's iPhone 15 Pro. Current average shipping times for both the iPhone 16 Pro and iPhone 16 Pro Max stand at 14 and 19 days respectively.
This is much shorter than that of last year’s iPhone 15 and iPhone 15 Pro, which was 24 and 32 days, respectively. This decline in shipping is a sign of lesser demand rather than a better supply chain.
Some analysts say it is probably the result of better supply, others believe it just reflects that consumers are less enthusiastic about the new models.
Apple had ambitious plans for the iPhone 16 with great strides to be taken in AI. However, the giant couldn’t back these up as the rollout of Apple Intelligence got delayed in its biggest consumer nations like China.
The United States will get it in beta next month, while the other regions will obtain it much later. This is quite damaging, given that competition and a weak economy are already weakening sales of iPhones.
Huawei has revealed what the world's first tri-fold smartphone, just hours after arch-rival Apple launched the iPhone 16. Barclay Analysts point out that such strong competition in the Chinese market and weak macroeconomic conditions with delays of AI features hurt Apple sales further.
Heavy reliance on sizeable discounts for the iPhone 15, raises questions of whether the iPhone 16 is overpriced.
Feature-rich and stylishly designed iPhone 16 Pro and iPhone 16 Pro Max begin selling at US$999 and US$1,199, respectively. Without their main selling point, the Apple Intelligence, they seem to fail in pricing and value perception.
Analysts have revealed that there is a fear of the hope of maintaining high-priced iPhones in the context of global economic uncertainty and harsh competition that scare customers further away. The lack of apparent, practical advantages from the AI features might make the iPhone 16 an unwise premium purchase.
The product not only will face external competition but also internal competition from the previous high successes of the iPhone 15 and iPhone 15 Pro. If the new rollout doesn’t come with Apple intelligence features quickly then the new iPhone 16 might end up losing further market share, especially over the holiday season.