Apple had high hopes for the iPhone 16, banking on new artificial intelligence (AI) features to drive sales. However, early sales estimates show that the iPhone 16 isn’t performing as well as Apple anticipated.
Lower Pre-Sale Numbers for iPhone 16
Apple sold an estimated 37 million units during the first weekend of iPhone 16 pre-sales, marking a 12% drop compared to the iPhone 15 launch. Analyst Ming-Chi Kuo from TF International Securities highlighted a significant decline in demand for the higher-priced iPhone 16 Pro models. Another analyst, Dan Ives of Wedbush, reported slightly higher estimates at around 40 million units.
Pro Models See Sharp Decline in Demand
The iPhone 16 Pro and Pro Max models saw a significant dip in sales. Apple sold 9.8 million iPhone 16 Pros and 17.1 million iPhone 16 Pro Max units during the first weekend, representing a 27% and 16% decline year-over-year, respectively. In contrast, the standard iPhone 16 and iPhone 16 Plus saw a slight increase in sales compared to last year’s iPhone 15 models.
AI Features Not Enough to Boost Sales
Apple’s new AI features, marketed as “Apple Intelligence,” are not yet available on the iPhone 16 devices. These features are set to roll out with iOS 18.1 in the coming months. Analysts believe this delay, combined with increased competition in markets like China, has contributed to slower sales.
Base iPhone Models Outperform Pro Versions
One reason for the slow sales of the Pro models may be that the standard iPhone 16 models have seen significant upgrades in cameras and processors, making them more attractive to consumers. Angelo Zino, an analyst at CFRA Research, suggested that the base models are simply “too good,” making consumers less willing to pay for the more expensive Pro models.
Shorter Delivery Lead Times May Indicate Supply Chain Improvements
Delivery lead times for the iPhone 16 Pro models were shorter than expected, with customers waiting 1-2 weeks compared to 3-4 weeks for the iPhone 15 Pro last year. Some analysts view this as a positive sign that Apple has improved its supply chain, allowing for faster production and distribution.
iPhone 16 Could Still Be a Success
While early sales figures may seem disappointing, analysts believe the iPhone 16 could still prove successful in the coming months. T-Mobile CEO Mike Sievert reported that more iPhone 16 units were sold than iPhone 15s during the same period last year. Additionally, analysts predict that the iPhone 16 will perform well during the holiday season, with a potential sales surge.
Conclusion
Though the iPhone 16 hasn’t hit Apple’s initial expectations, it’s too early to write off the new device. With AI features rolling out soon and the holiday season ahead, Apple may still see a successful sales cycle for its latest iPhone model.
