Apple officially launched the iPhone 16, Apple Watch Series 10, and AirPods 4 on Friday. The technology company invited all customers to visit any of its stores around the world. These products have been announced in September and, starting from September 13, went on pre-orders. To celebrate the launch, Apple lit up its famous glass cube at the Fifth Avenue store in New York City, teeing up the pending new Siri feature that will light up the borders of the screen on the iPhone 16 when it ships in October.
The iPhone 16 marks a significant jump in Apple's investment in AI because it introduces new features under a brand-new umbrella: Apple Intelligence. It'll let users rewrite text, remove stuff from photos, and have an even better Siri starting this October. These software changes are arriving only on the iPhone 16 and last year's iPhone 15 Pro devices.
But Apple's stock fell Monday after reports from analysts signaled the iPhone 16 may not see demand as strong as had been expected. In a report, TF Securities analyst Ming-Chi Kuo said first-weekend sales were 12% lower compared to the launch of last year's iPhone 15. The other financial institutions also included Barclays, JPMorgan, and Bank of America, which explained that longer shipping times last year could have inflated demand for the iPhone 15 Pro model series, making demand look weaker this year with iPhone 16 Pro models.
In an interview with CNBC, CEO Tim Cook was asked if early sales were better or worse compared to last year's launch. To that, Cook said, "I don't know yet, it's only the first hour, so we'll see."
Despite the early concerns, analysts at UBS said investors should not overreact to what appeared to be lighter demand. The analyst noted that last year's figures were skewed by supply chain disruptions that pushed wait times for certain versions of the iPhone. By comparison, pre-order wait times for the iPhone 16 Pro Max this year are shorter-averaging 26 days versus 41 days for the iPhone 15 Pro Max last year.
The Swiss bank also cited the lack of a "killer app" along with a relatively inchoate unveiling of Apple Intelligence as factors that may have resulted in softer-than-expected initial demand for the iPhone 16. While the iPhone 16 presented evolutionary-not revolutionary-changes, the analysts cautioned against jumping to conclusions from early sales data. They said both U.S. and China sales data have been underwhelming so far, implying that a major sales "super-cycle" is unlikely.
Alongside the iPhone 16, Apple introduced the Apple Watch Series 10, which features a larger display compared to its predecessors. The latest Series 10 and its predecessor, Series 9, have Sleep Apnea detection. Meanwhile, new AirPods 4 feature a case with a more compact design, along with an option for noise cancellation.
