Apple shares fall as reports indicate weak early demand for iPhone 16
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The investment bank said delivery times for preorders of the new iPhone 16s are shorter than those seen for last year’s iPhone 15 launch, suggesting a balance in supply that hasn’t been tested by a surge in demand.
“Notably, compared to the first day of iPhone 15 pre-orders, iPhone 16 delivery times are a week shorter on average,” Citi analysts wrote.
Related: Huawei responds to Apple's iPhone 16 with the first trifold phone
“The delivery time is the longest for the Pro Max model, followed by Pro, and with consumers opting for larger storage options, the 256GB and 512GB models have longer delivery times,” Siti said. He termed this shift towards higher-end models as a “premiumisation” trend.
It's funny that we're seeing Apple's stock drop by billions of dollars because a report said new phone sales were poor. We've heard this story before…
— Jim Cramer (@jimcramer) September 16, 2024
Jefferies analysts also noted softening consumer interest, particularly in the US, and said some iPhone 16 models became available for store pickup almost immediately.
Decline in demand for iPhone 16
Meanwhile, Taiwan-based Apple analyst Ming-Chi Kuo reported that Apple sold an estimated 37 million new iPhone 16 units in its opening weekend, down about 12.7% compared to the first days following last year's iPhone 15 launch.
Demand for the new iPhone series could prove crucial to the broader AI investment thesis, as Apple is seen as the tech conglomerate best positioned to deliver new technology at a consumer-facing level via its 1.4 billion user base.
Related: Analyst rethinks Apple stock price target after iPhone 16 launch
The company is also trying to generate interest in the iPhone, which accounts for about half of its annual revenue, after a long period of weak sales.
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iPhone revenue during the quarter ended June fell 1% from a year earlier to $39.3 billion, as sales in China fell 6.5% to $14.73 billion.
Apple shares were down 2.6% in premarket trading, indicating an opening price of $217.70. Such a move would extend the stock's one-month decline to about 3.6%.
Related: Veteran fund manager sees trouble ahead for stocks