Apple shares fell nearly 3% on Monday after several analysts said delivery times for new iPhone 16 Pro models indicated weaker-than-expected demand, possibly due to the delayed launch of key artificial intelligence features.
Last week, Apple unveiled its long-awaited iPhone 16 series, designed around its artificial intelligence software, Apple Intelligence.
Early pre-order data from BofA Global Research revealed shorter global shipping times for iPhone 16 Pro models compared with last year’s 15 Pro models, as of Monday, three days after the company began accepting pre-orders.
The average shipping time for the iPhone 16 Pro is currently 14 days, down from 24 days for the iPhone 15 Pro last year, the data showed, while the 19-day shipping 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 main selling point, Apple Intelligence, is not available at launch with the iPhone 16,” said Ming-Chi Kuo, an Apple analyst at TF International Securities, in a blog post.
Apple Intelligence is not expected to arrive in the US in English-language beta until next month, with other versions as early as next year, which is likely to keep some customers on the fence about upgrading to the Series 16.
First-weekend pre-order sales for the iPhone 16 Pro and Pro Max models fell 27% and 16%, respectively, according to Kuo’s estimates based on each model’s lead time and production plans.
“The US is much weaker than last year unless Apple massively increases supply allocation,” Jefferies analysts said.
To be sure, some analysts also said improved supply of the Pro models could have led to shorter shipping times this time around, after supply issues with a camera lens impacted shipments of the iPhone 15 Pro Max last year.
“We are not concerned that pre-orders are not showing significant growth,” said DA Davidson analyst Gil Luria.
“The AI features will be rolled out gradually… meaning the upgrade cycle will likely materialize over the next 12 to 18 months.”
Shares closed at $216.32 but are still up 12% this year.
