Apple Inc. shares experienced a notable decline on Monday following a report from a prominent analyst, Ming-Chi Kuo of TF International Securities, who highlighted weaker-than-expected demand for the new iPhone 16 Pro model. Kuo’s analysis revealed that pre-order sales, which began on Friday, have reached an estimated 37 million units, marking a 13% decrease compared to last year’s iPhone 15 launch.
“One of the key factors for the lower-than-expected demand for the iPhone 16 Pro series is that the major selling point, Apple Intelligence, is not available at launch alongside the iPhone 16 release,” Kuo stated in his report1. This delay in the rollout of Apple Intelligence, a feature heavily promoted during the launch event, has been a significant factor in the subdued interest.
The market reaction was swift, with Apple shares dropping approximately 3% in early trading on Monday, reducing their year-to-date gain to around 12%, which is below the 15% advance in the Nasdaq 100 Index.
iPhone 16 first weekend pre-order analysis: estimated total sales of about 37 million units; Pro series demand lower than expectedhttps://t.co/GGAN9Yewx3
— 郭明錤 (Ming-Chi Kuo) (@mingchikuo) September 15, 2024
Morgan Stanley’s Erik Woodring noted that attention will now shift to “early iPhone 16 pre-order and lead time data that we will start to collect this Friday.” He added that the demand weakness for the iPhone 16 is particularly concerning as the holiday selling season approaches, reported Bloomberg.
Matthew Maley, chief market strategist at Miller Tabak + Co., echoed these sentiments, stating, “The risk of a meaningful decline in the shares has risen in a material way”.
Related Stories:
Apple Cuts Prices for iPhone 14 and iPhone 15 Models
Apple iPhone 14 launch date leaked, may arrive earlier than expected
Apple Announces Dates For iPhone 16 Launch Event
Apple Event 2024 Live Streaming: iPhone 16 Series ‘It’s Glowtime’ Event
iPhone 16 vs iPhone 15: 7 Biggest Changes to Expect in the Next Apple Upgrade
Apple iPhone 14 is available for price below ₹40,000 on Flipkart – Details here
iPhone 16 Leaks: New Features, Latest Designs And More
iPhone 14 Orders Begin to Arrive: Apple Confirms iOS 16 Bug Impacting New Device Activation
Leave a Reply