Apple Shares Plunge: Low Demand for iPhone 16 Pro Models Hits Stock

Apple Faces Challenges with iPhone 16 Pro Demand

On Monday, Apple Inc., the renowned US-based technology giant, saw its stock drop by nearly three percent. This decline has raised concerns among analysts about the potential underwhelming demand for the newly launched iPhone 16 Pro models. Analysts attribute this lag in demand primarily to the delay in the rollout of Artificial Intelligence (AI) features by Apple, which are anticipated to enhance the user experience.

Expected AI Features and Their Impact

Apple’s AI software, tentatively named Apple Intelligence, is expected to debut in beta next month, with additional versions slated for release next year. The delay in these advanced features has left some customers hesitant to upgrade their old devices, as they fear missing out on significant improvements. Additionally, many prospective buyers are choosing to postpone their purchases, as the full array of AI enhancements will not be available until later updates.

Pre-Order Trends for iPhone 16 Series

Pre-orders for the iPhone 16 series, which commenced last week, indicate a growing interest in the standard iPhone 16 and the iPhone 16 Plus models. According to Ming-Chi Kuo, a reputable analyst at TF Securities, there has been a year-on-year boost in demand for the iPhone 16, increasing by roughly 10%. The iPhone 16 Plus has seen an even more impressive rise, boasting around 48% more demand than its predecessor during the first weekend of pre-orders.

Contrasting Demand for Pro Models

Despite the growing interest in the standard models, pre-orders for the iPhone 16 Pro and iPhone 16 Pro Max remain disappointing. Collectively, the iPhone 16 series is projected to sell around 3.7 million units during the first weekend of pre-orders—representing about a 12.7% decrease compared to the iPhone 15 series released last year. Analysts suggest that the absence of notable AI features at launch may significantly contribute to this dip in enthusiasm for the Pro versions of the devices.

Anticipated Holiday Boost and Price Adjustments

Looking ahead, experts predict that demand for the iPhone 16 series may surge during the upcoming holiday season. In a strategic move, Apple has also lowered the prices of previous generation models by up to ₹10,000, making them more attractive options for consumers. This reduction applies to the iPhone 15 and iPhone 14, enhancing their competitiveness in the market.

Conclusion

While the iPhone 16 series shows promise in certain sectors, the lukewarm reception of the Pro models raises questions about Apple’s product strategy for high-end devices. As the company navigates these challenges, the forthcoming updates and features could ultimately sway consumer preferences and drive demand during this key shopping period.