Lower-Than-Expected iPhone 16 Sales: Apple’s Path to Recovery with AI and Seasonal Promotions

Apple's stock has recently underperformed, largely due to lower-than-expected demand for the iPhone 16.

According to analyst Ming-Chi Kuo, first-weekend pre-order sales for the iPhone 16 series are estimated at around 37 million units, a decline of approximately 12.7% compared to last year’s iPhone 15 series. Kuo noted that one significant factor contributing to this drop in demand is the absence of the much-anticipated "Apple Intelligence" feature at launch, which may leave potential customers hesitant about upgrading. Intense competition in the Chinese market continues to impact iPhone sales as well.

Additional data supports this trend: BofA Global Research reports that the average shipping time for the iPhone 16 Pro is currently 14 days, compared to 24 days for the iPhone 15 Pro last year. Similarly, the iPhone 16 Pro Max has a shipping time of 19 days, down from 32 days for its predecessor.

Despite the disappointing initial sales figures for the iPhone 16, Apple has several strategies to boost its performance.

The introduction of Apple Intelligence, along with seasonal promotions during the year-end holidays in the U.S. and Europe, as well as China's Double 11 shopping festival, will be crucial for shifting iPhone demand.

Analyst Gil Luria from D.A. Davidson expressed confidence, stating, "We're not worried if pre-orders don't show significant growth. The AI features will be introduced gradually, which suggests that the upgrade cycle may develop over the next 12 to 18 months."