Apple stock slides as reports suggest muted early iPhone 16 demand

Updated at 9:09 AM EDT

Apple shares moved lower in early Monday trading following a trio of reports that suggest early demand for its new iPhone 16s is falling behind last year's levels.

Apple (AAPL) , which launched its new iPhone 16 last week, is making a bet that the latest AI-infused iteration of its signature smartphone will reverse a few the most modern decline in global demand.

The new models, which go on general sale later this week, will cost between $799 for the fundamental iPhone 16 and $1,199 for the correct-end iPhone Pro Max.

The highly touted Apple Intelligence features that the phones will in the tip boast, however, shall be rolled out over the upcoming weeks and months, starting with a fresh iOS 18 operating system in order that you probably will be able to be readily on hand for download starting for the time being.

That delay, together with intensifying competition in China and a broader sense of upgrade fatigue from cash-strapped consumers, looks to have resulted in some early demand disappointment, in response to a note published Monday by Citigroup.

The investment bank said that delivery times for preorders of the fresh iPhone 16s are shorter than those observed for last year's iPhone 15 launch, suggesting a balance in supplies that hasn't been tested by a surge in demand.

"Notably, when when compared with the first day of iPhone 15 pre-orders, delivery times for the iPhone 16 are, on average, every week shorter," Citi analysts wrote.

Related: Huawei answers Apple's iPhone 16 with the first trifold phone

"Delivery times are longest for the Pro Max models, followed by the Pro, and consumers are choosing larger storage options, with 256GB and 512GB models showing longer lead times," Citi added, calling this tilt toward higher-end models a "premiumization" trend.

Hilarious that we're Apple's stock go down billions on account of 1 report that sales were light for the fresh phone. We have got heard this story before...— Jim Cramer (@jimcramer) September 16, 2024

Analysts from Jefferies also observed soft consumer interest, specially within the U.S., and noted that some iPhone 16 models have been readily on hand for store pickup almost promptly.

iPhone 16 demand dip

Taiwan-based Apple analyst Ming-Chi Kuo, meanwhile, reported that Apple sold an estimated 37 million new iPhone 16 units in its opening weekend, down around 12.7% from the first days after last year's iPhone 15 launch.

Demand for the fresh iPhone series may per chance prove the foremost for the broader AI investment thesis, as Apple is seen because a few the most effective-placed tech group to to deliver the fresh technology on the consumer-facing level through its 1.four billion user base.

Related: Analyst revisits Apple stock price target after iPhone 16 launch

It will be commonly in quest of to infuse interest within the iPhone, which accounts for around half of its annual revenue, following a protracted stretch of weakening sales.

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For the three months ended in June, iPhone revenue slipped 1% from a year earlier to $39.three billion, while China sales were down 6.5% to $14.seventy three billion.

Apple shares were marked 2.6% lower in premarket trading to point a spot bell price of $216.seventy eight. The kind of move would extend the stock's one-month decline to around three.6%.

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