Apple Down On Soft Demand

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Apple Down On Soft Demand

Apple (Aapl) Down 3% On Soft Demand

Apple's (AAPL) stock was down by 3% on Monday after the news that the demand for iPhone 16 Pro models was weaker than forecasted.

The experts deduced this weakness in demand from he fact that Apple is offering shorter delivery times for the iPhone 16. One of the reasons for this problem is the delayed rollout of AI features on Apple devices.

Apple Intelligence Delayed For Iphones

Just a week ago, Apple announced the Apple Intelligence which is an AI-powered feature for the iPhone and other Apple devices.

Based on the pre-order data from Bank of America Research, the global shipping times for the iPhone 16 are shorter than the iPhone 15.

On the surface, it may seem like Apple has improved its supply chain and logistics. However, it could also mean that the demand for new iPhone models is below expectations.

The average shipping time for iPhone 16 Pro is 14 days which is a lot lower than the delivery time of 24 days when the iPhone 15 was released last year.

Similarly, the shipping time of iPhone 16 Pro Max is 19 days wich is a lot shorter than the delivery time of 32 days for iPhone 15 Pro Max.

One reason why Apple is facing weaker sales is that Apple Intelligence will not be available right off the bat. Instead, the AI feature will likely be rolled out via an update sometime later down the road.

Starting next month, Apple Intelligence will be available to US consumers, while others will have to wait a while. According to third-party data, the pre-order sales of iPhone 16 Pro are down by almost 17%. Similarly, the sales of the iPhone 16 Pro Max are down by 16%.

The only possibility that could explain the poor result is that Apple has improved its supply allocation. But given the results, there is a very slim chance of that happening!

Another factor which could be a reason for weaker sales is the higher price tag of Apple iPhone 16 along with the weaker economic conditions around the world.

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