I’m skeptical, but, in a Medium post, analyst Ming-Chi Kuo says that iPhone 16 pre-order sales are less than expected. From his report:
- iPhone 16 series first-weekend pre-order sales are estimated at about 37 million units, down about 12.7% year-over-year (YoY) from last year’s iPhone 15 series first-weekend sales. The key factor is the lower-than-expected demand for the iPhone 16 Pro series.
- The delivery times of the iPhone 16 Pro series are significantly shorter than those of the 15 Pro series. In addition to the shipment increase before the pre-order, the key is that demand is lower than expected, as evidenced by the YoY decline in first-weekend sales.
- The significant YoY growth in shipments before pre-order for iPhone 16 Pro Max is due to improved tetraprism camera production yields and Apple’s optimistic outlook for demand for this model.
- One of the key factors for the lower-than-expected demand for the iPhone 16 Pro series is that the major selling point, Apple Intelligence, is not available at launch alongside the iPhone 16 release. Additionally, intense competition in the Chinese market continues to impact iPhone demand.
- While first-weekend sales of the iPhone 16 Plus and standard version were up YoY, their impact on total iPhone shipments is limited.
- Despite the YoY decline in first-weekend pre-order sales of the iPhone 16 Pro series, the supply chain’s production plans are unlikely to change significantly in the near term. Apple still has opportunities to improve sales through the release of Apple Intelligence and peak season promotions (year-end holiday season in America and Europe and Double 11 in China). These factors will be key points to watch for changes in iPhone demand.
- Strategies such as adding a tetraprism camera to the 16 Pro and maintaining iPhone 16 series pricing have had a limited help to iPhone 16 first-weekend pre-order sales. Suppose Apple Intelligence releases in 4Q24 and peak season promotions have a limited effect on iPhone 16 shipments. In that case, I believe that Apple will implement more aggressive iPhone product strategies in 2025 to stimulate market demand.
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