Early iPhone 16 Pre-Order Data Disappoints Analysts

Early Wall Street feedback on demand for Apple’s newest iPhone suggests the newest models might not be flying off the shelves.

Disappointing Pre-Order Data

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.

Sales Volume Looks Lower, But More Pro, Pro Max Sales Could Offset

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.

Investor Reaction

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.

Despite the disappointing pre-order data, analysts remain optimistic about the long-term prospects of the iPhone 16. The introduction of AI features and the wider availability of the Pro and Pro Max models in the U.S. could help drive sales in the coming months.

Investors, however, are showing some concern, as evidenced by the drop in Apple’s stock price. The market will be closely watching how the iPhone 16 performs in the coming weeks and months to determine if it can meet expectations and drive growth for the tech giant.

Conclusion

Early pre-order data for the iPhone 16 looks disappointing when compared to last year’s iPhone 15 launch, according to several analysts. The shorter average delivery times suggest lower sales volume, but the shift towards the higher-priced Pro and Pro Max models could help offset this. Analysts remain positive about the long-term potential of the iPhone 16, especially once the AI features are fully rolled out. However, investors are showing some concern, as evidenced by the drop in Apple’s stock price. The market will be closely watching how the iPhone 16 performs in the coming weeks and months.

Disclaimer: The information provided in this article is for informational purposes only and should not be considered as financial advice. Investing in stocks carries a certain level of risk, and individuals should always do their own research and consult with a financial advisor before making any investment decisions.