Shares of Apple declined almost 3 percent on Monday following comments from several analysts suggesting that delivery times for the new iPhone 16 Pro models point to weaker-than-anticipated demand, potentially due to the delayed introduction of crucial artificial intelligence features.
Apple recently unveiled its highly anticipated iPhone 16 series, which is designed around its AI software, Apple Intelligence. Preliminary pre-order data from BofA Global Research indicated shorter global shipping times for the iPhone 16 Pro models compared to the iPhone 15 Pro models from last year. As of Monday, just three days after pre-orders began, the average shipping time for the iPhone 16 Pro was 14 days, down from 24 days for the iPhone 15 Pro, while the iPhone 16 Pro Max had a 19-day shipping time, compared to 32 days last year.
Ming-Chi Kuo, an Apple analyst at TF International Securities, stated in a blog post that the primary factor behind the lower-than-expected demand for the iPhone 16 Pro series is the delayed availability of Apple Intelligence, which was supposed to be a major selling point. Apple Intelligence is scheduled to launch in the U.S. version of the English language in beta next month, with other versions potentially not arriving until next year, which could deter some customers from upgrading to the 16 series.
According to Kuo's estimates, first-weekend pre-order sales for the iPhone 16 Pro and Pro Max models were down 27 percent and 16 percent, respectively, based on delivery times and production plans. However, BofA analyst Wamsi Mohan noted that the shorter shipping times might also reflect improvements in Apple's supply chain for its Pro models. Last year's shipping delays for the iPhone 15 Pro Max were attributed to supply issues with the tetraprism lens.
