Apple's iPhone 16 Pre-Order Slump Shakes Stock but Long-Term Faith Remains
1min read Apple's stock fell by 2.78% on Monday due to concerns over lower-than-expected pre-order sales for the iPhone 16 series during its initial weekend. According to analyst Ming-Chi Kuo, around 37 million units were pre-ordered, marking a 12.7% decrease compared to the previous year's iPhone 15 series. The primary shortfall was in the iPhone 16 Pro series, where demand lagged behind expectations.
Analysts believe that while this demand weakness might impact Apple's short-term performance, it is unlikely to pose a significant long-term issue for the tech giant. Despite recent fluctuations driven by unmet expectations, the overarching stability of Apple's business due to its consumer loyalty remains a key factor in its valuation premiums compared to its tech peers.
Leo Nelissen highlighted that Apple's current high price-to-earnings ratio leaves little room for error but maintains confidence in Apple's continuous innovation and income generation from its user base. While challenges exist, the broader outlook for Apple appears resilient.
Daniel Sereda also noted the potential for ongoing weak stock performance in the short term, but affirmed that the introduction of Apple Intelligence later on could result in stronger outcomes for the company. Despite anticipation for revised earnings projections possibly dampening the share price further, Apple is expected to eventually align with market expectations.