Apple Shares Slide as iPhone 16 Pro Demand Disappoints Investors
1min read Apple shares experienced a premarket dip of 2.4% on Monday, following analyst Ming-Chi Kuo's report indicating that demand for the iPhone 16 Pro series fell short of expectations. Kuo's analysis, based on initial weekend preorders, estimates around 37 million units sold, a 12.7% decline from the iPhone 15 series' debut weekend last year. He attributes the weaker demand mainly to the absence of the Apple Intelligence feature alongside the iPhone 16 launch.
Several Apple-related stocks saw declines in response to the news. As of the latest reports, stock prices for key suppliers like Sunny Optical and others showed notable drops. This highlights investor caution regarding the sales outlook for the iPhone 16 series.
Kuo emphasizes that the unexpectedly low demand for the Pro series is influenced by the lack of immediate availability of Apple Intelligence, along with intense competition within the Chinese market affecting overall iPhone demand.
Despite the Pro series' performance, the iPhone 16 Plus and base model saw a modest increase in sales. However, this was insufficient to boost the entire lineup's shipments significantly.
Kuo suggests that although the Pro series didn't meet sales targets, production schedules for the supply chain remain largely unchanged. There remains potential for increased sales following the rollout of Apple Intelligence and through promotional events such as China's Double Eleven festival.
Looking forward, Kuo predicts that if Apple's sales do not notably improve with the introduction of Apple Intelligence and during key shopping seasons, more aggressive product strategies may be implemented by 2025 to stimulate market demand.