Apple's stock decline is attributed to the weak demand for the 'iPhone 16 Pro' series, according to analysis.
September 16th, 2024 22:28 JST
Analyst Ming-Chi Kuo pointed out that demand for the 16 Pro series is below expectations based on analysis of pre-order reservations for the new smart phone "iPhone" over the first weekend. Apple shares fell 2.4% temporarily in pre-market trading on the 16th.
Analyst Ming-Chi Kuo pointed out that demand for the 16 Pro series is below expectations based on analysis of pre-order reservations for the new smart phone "iPhone" over the first weekend. Apple shares fell 2.4% temporarily in pre-market trading on the 16th.
"The estimated sales volume for the first weekend of the iPhone 16 series pre-orders is about 37 million units, which is expected to decrease by approximately 12.7% compared to the sales volume of the iPhone 15 series on the first weekend of last year," wrote Kuo in the report.
"The main reason for the lower-than-expected demand for the iPhone 16 Pro series is that the new artificial intelligence (AI) platform, 'Apple Intelligence,' which is the biggest selling point, is not available at the same time as the release of the iPhone 16."
"The intensifying competition in the Chinese market continues to impact iPhone demand."
On the other hand, JP Morgan analyst Samik Chatterjee noted that consumers continue to prefer the Pro models, but the order situation for these flagship models has started at a more modest pace compared to last year.
"In the United States, the waiting time for the Pro models is longer, but most models (except for Pro Max) can be received on the launch day," he said.
Analyst Craig Moffett of MoffettNathanson pointed out that if Apple investors are expecting U.S. mobile carriers to push sales of the new iPhone, they will unfortunately be disappointed.
This year's promotion may be profitable, but Mr. Moffett stated in the report that it will not exceed last year's level.
"The main reason for the lower-than-expected demand for the iPhone 16 Pro series is that the new artificial intelligence (AI) platform, 'Apple Intelligence,' which is the biggest selling point, is not available at the same time as the release of the iPhone 16."
"The intensifying competition in the Chinese market continues to impact iPhone demand."
On the other hand, JP Morgan analyst Samik Chatterjee noted that consumers continue to prefer the Pro models, but the order situation for these flagship models has started at a more modest pace compared to last year.
"In the United States, the waiting time for the Pro models is longer, but most models (except for Pro Max) can be received on the launch day," he said.
Analyst Craig Moffett of MoffettNathanson pointed out that if Apple investors are expecting U.S. mobile carriers to push sales of the new iPhone, they will unfortunately be disappointed.
This year's promotion may be profitable, but Mr. Moffett stated in the report that it will not exceed last year's level.
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