Apple shares slide nearly 3%

Shorter iPhone 16 shipping times signal soft demand

By Reuters

Published: Mon 16 Sep 2024, 9:04 PM

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 .

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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 per cent and 16 per cent, 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.