iPhone 16 Sales Underwhelm After Half Month: Is It Game Over?

Two weeks have passed since the official launch of the iPhone 16, yet its sales performance has been disappointing.

A recent Morgan Stanley report revealed that delivery times for the iPhone 16 models are significantly shorter than those for the iPhone 15, with the top-tier Pro Max model available in just 25 days compared to over 40 days for its predecessor. This shorter lead time suggests a lack of consumer demand.

Morgan Stanley noted that the delivery cycles for the iPhone 16 are the shortest in the past five years, reminiscent of the iPhone 12 launch. The signs of decline became apparent as early as the first week post-launch. Renowned analyst Ming-Chi Kuo aggregated sales data showing that pre-order volumes, average waiting times, and stock levels for the iPhone 16 fell short of expectations.

Adding to Apple’s woes, the China Academy of Information and Communications Technology reported a significant drop in Apple’s market share in China, with domestic brands experiencing a 31.7% year-over-year increase in August, while Apple's sales plummeted over 10%. Out of the 2.4 million smartphones shipped in August, only 187,000 were foreign brands, with Apple holding the majority of that share.

Is there still hope for Apple?

A shorter lead time doesn't necessarily mean that a product is not selling well. In this case, it's possible that Apple accurately forecasted early demand and has sufficient iPhones in stock to ensure faster delivery than previous launches, some of which were disrupted by the pandemic.

Morgan Stanley has also provided more insights into the latest launch, claiming early buyers are upgrading because their old phones were due for upgrade or they want a better camera and improved battery life. AI doesn't seem to be factoring heavily into purchase decisions right now, but that might be because Apple Intelligence is currently available in beta.