Apple's stock price fell more than 3% amid weak demand for iPhone 16

Apple shares dropped by more than 3% earlier this week following reports that early demand for its new iPhone 16 lags behind last year’s levels. 

The new models, which will go on sale later this week, will be priced from $800 for the base iPhone 16 model to $1,200 for the iPhone Pro Max (in the base configuration). 

However, the widely publicized Apple Intelligence features, which the phones will eventually boast, will be rolled out over the coming weeks and months, starting with the new iOS 18 operating system. Apple is betting that its in-house artificial intelligence system, named Apple Intelligence, will revitalize global demand for the iPhone. 

Citi analysts noted that the delivery times for pre-orders of the new iPhone 16 are shorter than during last year’s iPhone 15 launch: “Notably, compared to the first day of iPhone 15 pre-orders, iPhone 16 delivery times are on average one week shorter.” 

“The longest delivery times are for Pro Max models, followed by the Pro, and consumers are opting for larger storage options: for the 256 GB and 512 GB models, delivery times are longer,” Citi added. 

Jefferies analysts also highlighted weak consumer interest, particularly in the U.S., noting that some iPhone 16 models became available for in-store pickup almost immediately. 

Meanwhile, Apple analyst Ming-Chi Kuo from Taiwan reported that Apple sold about 37 million new iPhone 16 units over the first weekend, approximately 12.7% less than in the first few days following last year’s iPhone 15 launch.