Apple Inc. (AAPL) is facing a slight bump in the road with its latest flagship smartphones. According to renowned analyst Ming-Chi Kuo, the iPhone 16 Pro and Pro Max models have experienced weaker-than-expected demand during the first weekend of pre-orders.
While Kuo reports that the overall iPhone 16 series sales have reached a respectable 37 million units, the Pro models are not performing as strongly as anticipated. This analysis is based on a recent supply chain survey and pre-order data from Apple’s official websites. Kuo notes that the average delivery times and shipment volumes before pre-orders suggest a subdued demand for the Pro models.
This news comes as a potential setback for Apple, considering the significant emphasis placed on the Pro models’ new AI capabilities. The iPhone 16 series features Apple Intelligence, a beta AI software first unveiled at WWDC and initially limited to the iPhone 15 Pro models. This advanced AI feature was a major selling point for the Pro lineup, intended to differentiate it from the standard iPhone models.
However, the iPhone 16 series is also facing a challenging competitive landscape, particularly in China, the world’s largest smartphone market. Some Chinese consumers have expressed disappointment over the lack of more robust AI features in the new iPhone, leading some to opt for alternative devices, such as Huawei’s tri-fold phone.
Apple has also raised the price for battery replacements for the iPhone 16 Pro and Pro Max models, increasing the cost by $20 to $119. This price increase, while relatively small, could further deter some consumers considering the Pro models.
While the initial pre-order numbers for the iPhone 16 series are strong overall, the weaker performance of the Pro models raises questions about Apple’s revenue projections for the new lineup. It remains to be seen how these initial trends will translate into overall sales figures and whether Apple will make adjustments to its strategy in response to this lower-than-expected demand for the Pro models.
