Apple loses big: Attributed to early deliveries and delayed rollout of Apple Intelligence
Apple lost nearly 3 per cent of shares after some analysts reported that the delivery time of the new iPhone is much shorter than the previous versions.
As the most anticipated iPhone 16 hit the global market, an unexpected turn of events has stunned the tech giants. According to reports, Apple lost nearly 3 per cent of shares after some analysts reported that the delivery time of the new iPhone is much shorter compared to previous iPhone launches. This suggests a weaker demand for the new model, possibly due to the delayed AI features rollout.
Apple unveiled the iPhone 16 in the global market last week in a launch event called “Its Glowtime”. The launch majorly revolved around the most anticipated Apple Intelligence powered by AI. But now it’s delay is affecting the sales of the new iPhone. Several reports claimed that Apple lost around $116 billion because of this, but the figure is not officially confirmed.
Earlier data from BofA Global Research indicated shorter global shipping times for the iPhone 16 Pro models compared with 15 Pro models. The report showed a cut of ten days in the delivery of the iPhone 16 Pro from 24 to 14 days, compared to the 15 Pro, which was launched last year. Meanwhile, the 16 pro max comes with a shipping time of 19 days which is 13 days shorter than the 15 pro max.
“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,” Ming-Chi Kuo, a Taiwan-based analyst at TF International Securities said in a blog post.
During the first weekend, pre-order sales for the iPhone 16 Pro and Pro Max models dropped down to 27% and 16%, respectively. To this Jefferies analysts said, “The US is much weaker than last year, unless Apple massively increased supply allocation.”
Experts believe that improving the supply of the Pro models could have resulted in shorter shipping times. “We are not concerned if pre-orders don’t show meaningful growth. The (AI) features will be rolling out gradually … which means the upgrade cycle will likely materialize over the next 12-18 months,” D.A. Davidson analyst Gil Luria said.
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