Apple Shares Slump on Analyst’s iPhone 16 Demand Warning

September 16, 2024 William Johnson Smartphones 0

Apple Shares Slump on Analyst’s iPhone 16 Demand Warning”

Apple Inc. shares experienced a notable decline on Monday following a report from a prominent analyst, Ming-Chi Kuo of TF International Securities, who highlighted weaker-than-expected demand for the new iPhone 16 Pro model. Kuo’s analysis revealed that pre-order sales, which began on Friday, have reached an estimated 37 million units, marking a 13% decrease compared to last year’s iPhone 15 launch.

“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,” Kuo stated in his report1. This delay in the rollout of Apple Intelligence, a feature heavily promoted during the launch event, has been a significant factor in the subdued interest.

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The market reaction was swift, with Apple shares dropping approximately 3% in early trading on Monday, reducing their year-to-date gain to around 12%, which is below the 15% advance in the Nasdaq 100 Index.

Morgan Stanley’s Erik Woodring noted that attention will now shift to “early iPhone 16 pre-order and lead time data that we will start to collect this Friday.” He added that the demand weakness for the iPhone 16 is particularly concerning as the holiday selling season approaches, reported Bloomberg.

Matthew Maley, chief market strategist at Miller Tabak + Co., echoed these sentiments, stating, “The risk of a meaningful decline in the shares has risen in a material way”.

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About William Johnson 307 Articles
Demystifying the world of finance is my mission. As a finance news writer with 7 years of experience, I've covered everything from breaking market news to in-depth analysis of industry trends. I'm here to keep you informed and empowered in your financial journey.

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