Apple shares slip as iPhone 16 shipping time slows

Apple shares fell nearly 3% on Monday after some analysts said delivery times for new iPhone 16 Pro models reflected weaker-than-expected demand, possibly due to the delayed rollout of key artificial intelligence features.

Apple last week unveiled its long-awaited iPhone 16 series designed around its AI software, Apple Intelligence.

Early pre-order data from BofA Global Research revealed shorter global shipping times for iPhone 16 Pro models compared to last year’s 15 Pro models as of Monday, three days after the company began taking pre-orders.

The average shipping time for the iPhone 16 Pro was currently 14 days, down from 24 days for the iPhone 15 Pro last year, the data shows, while the 19-day ship time for the iPhone 16 Pro Max compares with 32 days last year. .

“The key factor is lower-than-expected demand for the iPhone 16 Pro series… the main selling point, Apple Intelligence, is not available at launch with the iPhone 16 release,” Apple analyst Ming-Chi Kuo said. at TF International Securities, said in a blogpost.

Apple Intelligence is due to arrive in an English-language US version in beta as early as next month, and for a second version later next year, potentially leaving some customers on the fence about upgrading to the 16 series.

First-week pre-order sales for the iPhone 16 Pro and Pro Max models were down 27% and 16%, respectively, according to Kuo’s estimates based on delivery times and production plans for each model.

However, BofA analyst Vamsi Mohan noted that lower ship times could be a factor in Apple improving the supply chain for its Pro models. Last year’s shipping for the iPhone 15 Pro Max was affected by supply issues with the tetraprism lens.