Apple, the American tech giant, has faced a staggering $116 billion loss just days after launching its iPhone 16. According to a report from the Hindustan Times, Apple’s shares dropped by 3% on Monday, leading to this significant financial setback. The drop is being attributed to a lower-than-expected demand for the iPhone 16 Pro models.
Apple officially unveiled its iPhone 16 series, equipped with advanced AI features, on September 9. Pre-orders for the devices began on September 13, and deliveries are scheduled to commence on September 20.
At the launch event, Apple showcased its new “Apple Intelligence” features as part of the iPhone 16, but these features will only be available to users with the iOS 18.1 update, expected in October or November. Although Apple released iOS 18 globally on September 16, the much-anticipated Apple Intelligence features were noticeably absent.
According to a BofA Global Research report, the pre-order delivery times for the iPhone 16 are notably shorter than last year’s iPhone 15 Pro models. The iPhone 16 Pro’s average delivery time is currently around 14 days, compared to 24 days for the iPhone 15 Pro last year. Similarly, the iPhone 16 Pro Max has a delivery time of 19 days, down from 32 days for its predecessor.
Analyst Ming-Chi Kuo of TF International Securities shared in a blog post, “The demand for iPhone Pro models has weakened, primarily because Apple Intelligence features are not yet available on these devices.”
Meanwhile, Jefferies analysts report a 27% drop in pre-orders for the iPhone 16 Pro and a 16% decline in pre-orders for the iPhone 16 Pro Max, compared to last year’s models. The U.S. market, in particular, is seeing lower consumer interest than in previous years.
Some industry experts believe that the shorter delivery times may not be solely due to reduced demand. They suggest that Apple may have improved its supply chain, allowing for faster deliveries.
DA Davidson analyst Gil Luria commented, “The decline in pre-orders shouldn’t be seen as a major issue. The AI features will be available soon, and as they roll out, we expect a wave of Apple users to upgrade to the iPhone 16 next year.”
This recent development highlights that while Apple may be facing short-term challenges, the long-term potential for the iPhone 16, particularly with its AI capabilities, may eventually sway consumers. However, the current market trends indicate that the company will need to navigate carefully through a slower-than-expected adoption period.