Apple shares fell nearly 3% on Monday after multiple analysts said delivery times for new iPhone 16 Pro models indicated weaker-than-expected demand, likely due to a delay in the rollout of a key artificial intelligence feature.
Apple last week unveiled the highly-anticipated iPhone 16 series, designed around its AI software, “Apple Intelligence.”
Early pre-order data from BofA Global Research revealed that global shipping times for the iPhone 16 Pro models were faster than last year's 15 Pro models as of Monday, three days after the company began taking pre-orders.
According to the data, the iPhone 16 Pro now has an average shipping time of 14 days, down from 24 days for the iPhone 15 Pro last year, while the iPhone 16 Pro Max is shipping in 19 days, down from 32 days last year.
“The main factor is weaker than expected demand for the iPhone 16 Pro series. Apple Intelligence, its biggest selling point, will not be available at the launch of the iPhone 16,” Ming-Chi Kuo, Apple analyst at TF International Securities, said in a blog post.
Apple Intelligence will only be available in beta form in the English US version next month, and in other versions next year at the latest, which could make some customers hesitant to upgrade to the 16-series.
According to Kuo's estimates based on delivery dates and production plans for each model, pre-orders for the iPhone 16 Pro and Pro Max models fell 27% and 16%, respectively, during their opening weekend.
But Bank of America analyst Wamsi Mohan said the faster shipping times could also be due to Apple improving its supply chain for the Pro models, as last year's iPhone 15 Pro Max shipments were affected by supply issues with tetra prism lenses.
