Apple's iPhone 16 Lead Times Track Below Past Three Cycles: MS

Apple's iPhone 16 lead times have been tracking below the past three cycles, according to a report from Morgan Stanley (MS). The lead times for the iPhone 16 series have been shorter than those of the iPhone 15 series, indicating a potential shift in consumer demand or supply chain management.

The iPhone 16 Pro and Pro Max models have seen shorter shipping times compared to their predecessors. As of Monday, three days after Apple started taking pre-orders, the average ship time for the iPhone 16 Pro stood at 14 days, lower than the 24 days for the iPhone 15 Pro last year. The 19-day ship time for the iPhone 16 Pro Max compares with 32 days last year.

The reduced lead times could be attributed to several factors, including improvements in supply chain management, component availability, and consumer demand patterns. Apple's expansion of production to India and Brazil, as well as the delayed rollout of key AI features like Apple Intelligence, may also be contributing to the shorter lead times.

Apple's stock price has been volatile in recent weeks, with shares falling nearly 3% on Monday amid concerns about weaker-than-expected demand for the iPhone 16 series. However, some analysts remain optimistic about the long-term prospects for the iPhone 16, noting that the delayed rollout of AI features may lead to a more gradual upgrade cycle over the next 12-18 months.

As Apple continues to diversify its supply chain and adapt to changing consumer preferences, the company's ability to manage lead times and meet consumer demand will be crucial for its overall market performance.