Apple Loses Over 9.7 Lakh Crores As iPhone 16 Becomes Available In Just 14 Days

Apple’s stock fell by almost 3% after some analysts pointed out that delivery times for the new iPhone 16 Pro models suggest weaker-than-expected demand. A delay in launching key artificial intelligence (AI) features could be a major reason for the slower demand. Apple recently revealed its new iPhone 16 series, which focuses on its AI software, called Apple Intelligence.

Shorter Delivery Times Suggest Less Interest

According to BofA Global Research, shipping times for the iPhone 16 Pro models are shorter than last year’s iPhone 15 Pro. It now takes an average of 14 days to ship the iPhone 16 Pro, compared to 24 days for the iPhone 15 Pro last year. The iPhone 16 Pro Max shipping time is 19 days, down from 32 days last year.

AI Features Not Ready Yet

Ming-Chi Kuo, a well-known analyst, said the delay in Apple Intelligence, the iPhone 16 Pro’s main selling point, may be causing the weaker demand. He said, “The key factor is the lower-than-expected demand for the iPhone 16 Pro series … the major selling point, Apple Intelligence, is not available at launch.”

Lower Pre-Order Sales

Pre-orders during the first weekend were much lower compared to last year. Orders for the iPhone 16 Pro were down by 27%, and for the Pro Max, they dropped by 16%. Analysts at Jefferies noted that U.S. sales were especially weak compared to last year unless Apple increased its stock.

AI Features Will Roll Out Over Time

Some experts believe that the shorter delivery times could be due to better supply rather than weaker demand. Analyst Gil Luria explained, “We are not worried if pre-orders don’t show big growth. The AI features will be added gradually, and the upgrade cycle may take the next 12-18 months to fully happen.”