((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto))
(Added charts and analyst comments in paragraphs 8-11) by Deborah Mary Sophia
Shares of Apple AAPL.O fell nearly 3% on Monday after some analysts said delivery times for the new iPhone 16 Pro models indicated weaker-than-expected demand, possibly due to a delay in the rollout of key artificial intelligence features.
Apple last week unveiled its highly anticipated iPhone 16 series built around its artificial intelligence software, Apple Intelligence.
Early pre-order data from BofA Global Research showed shorter shipping times for the iPhone 16 Pro models compared to last year’s 15 Pro models, starting Monday, three days after Apple began taking pre-orders.
The average shipping time for the iPhone 16 Pro is currently 14 days, down from 24 days for last year’s iPhone 15 Pro, the data shows, while the iPhone 16 Pro Max’s shipping time is 19 days, down from 32 days last year.
“The key factor is the weaker-than-expected demand for the iPhone 16 Pro series… the main selling point, Apple Intelligence, is not available at launch,” Ming-Chi Kuo, a Taiwan-based analyst at TF International Securities, said in a blog post.
Apple Intelligence is expected to arrive in the US English-language version in beta next month, and in other versions as early as next year, which could deter some customers from upgrading to the Series 16.
First-weekend pre-order sales for the iPhone 16 Pro and Pro Max models were down 27% and 16%, respectively, according to Kuo.
“The US is much weaker than last year unless Apple has massively increased supply allocation,” Jefferies analysts said.
Some analysts also said that improved supply of the Pro models could have led to shorter shipping times this time around, after supply issues with a camera lens affected shipments of the iPhone 15 Pro Max last year.
“We’re not concerned if preorders don’t show meaningful growth,” said Gil Luria, an analyst at DA Davidson.
“The (AI) features will be rolled out gradually… meaning the upgrade cycle will likely materialize over the next 12 to 18 months.”
