Why Do Some Experts Think iPhone 16 Sales May Suffer?

by

The iPhone 16 could be Apple’s biggest launch in years, with groundbreaking new features like the upcoming Apple Intelligence, upgraded camera controls and better sensor functionality, a brand new action button, and a range of eye-catching new colors. Still, preliminary factors suggest that demand for the new models could plummet less than two weeks after they’re unveiled.

Per QuartzJefferies’ pre-order analysis published Wednesday showed that demand in the U.S. is slowly starting to improve but still lags behind the iPhone 15 launch in 2023. The investment bank found estimated delivery times for the iPhone 16 Pro were two to three weeks in its analysis of seven major cities.

In comparison, those who ordered the iPhone 15 Pro or Pro Max during last year's launch were expected to wait at least four weeks.

In a social media post on Wednesday, TF International Securities analyst Ming-Chi Kuo also noted that Apple employees were allowed to purchase the iPhone 16 at an employee discount. “Usually, employees have to wait a few weeks after the launch of new iPhone models before they can purchase them,” Kuo wrote, suggesting that this could be another sign that early demand is below expectations.

Again, Bloomberg Tech reporter Mark Gurman noted that this isn't the first time Apple employees have been given the option to buy a new model at the same time as the public, although demand has clearly been slow.

Kuo reported in a Medium blog post that the estimated total sales of first weekend pre-orders for the iPhone 16 pro series came in at 37 million units, down 12.7 percent from the iPhone 15 pro series during the same period last year.

However, Kuo believes that the delay in the launch of Apple Intelligence, which will be available via a beta software update in October with additional features to come in the coming months, could also hurt sales. The feature, which was announced as a key selling point for the new iPhones, will only be available on the iPhone 15 Pro models or higher.

Finally, Kuo said that what was hurting overall demand for the iPhone 16 was “intense competition” in China, where Huawei's resurgence had caused iPhone sales to decline in early 2024. In March, Huawei was expected to regain its position as the number one smartphone brand in China for the first time in several years.

Huawei's comeback was also expected to be significant domestically, but it is unlikely to challenge Apple's global shipment volume and cause the tech giant to fall from the top.

It’s also worth noting that the CEO of cellular giant T-Mobile has refuted these claims, telling CNBC that his company is seeing more demand. We’ll have to wait and see how all of this plays out in its earnings report.

Leave a Comment

url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url url