The iPhone 16 isn’t Selling as well as Apple May Have Hoped
Apple’s hopes for the iPhone 16 becoming a blockbuster hit have been dampened by slower-than-expected pre-sale figures. Despite the company introducing new artificial intelligence (AI) features, early sales estimates suggest the launch may not have generated the excitement Apple anticipated.
Pre-sale data shows that Apple sold approximately 37 million iPhone 16 units during its first weekend, down over 12% compared to the iPhone 15 launch last year. Analysts Ming-Chi Kuo and Dan Ives reported similarly cautious figures, with Ives estimating around 40 million pre-orders. The iPhone 16 Pro models, in particular, have seen a sharper decline, with a 27% year-on-year drop in sales for the Pro and a 16% decrease for the Pro Max, according to Kuo.
After years of sluggish iPhone sales, Apple was counting on the iPhone 16 to reinvigorate the market. The company had heavily marketed its new AI-integrated features, hoping these upgrades would encourage users to upgrade. However, despite the innovations, there seems to be a greater demand for the lower-priced iPhone 16 and 16 Plus models, potentially impacting Apple’s overall revenue and average selling price.
“The base iPhone models are simply too good,” noted CFRA Research analyst Angelo Zino, explaining that the standard iPhone 16 models have received significant improvements, making them comparable to the Pro versions. This has resulted in consumers opting for the less expensive models, which could reduce Apple’s profit margins.
Additionally, lead times for the iPhone 16 Pro models have been shorter than previous launches, a sign that demand might not be as strong. Kuo pointed out that Apple’s much-touted AI features, which aren’t yet available on the devices and are expected to roll out with iOS 18.1 next month, may not have had enough of an impact on early sales. Furthermore, Apple continues to face tough competition, particularly in China, which could be another factor affecting performance.
Despite this, industry experts remain optimistic that the iPhone 16 could still pick up momentum as the year progresses. Apple’s supply chain improvements and T-Mobile’s positive sales performance are seen as hopeful signs. Analysts are particularly focused on the holiday season, predicting that the iPhone 16 could still prove successful in the coming months.
Apple is expected to release its sales figures during its next earnings report, which will cover both the pre-sale and early retail periods. Analysts believe that the iPhone 16’s performance during the crucial holiday quarter could ultimately determine its success.