.Friday, September 23, 2024 4:30 PM

Barclays analysts are concerned about muted demand for Apple’s iPhone 16, citing shorter lead times and weaker channel checks during the first week of pre-orders. Demand for both the Pro and base models is trailing last year’s iPhone 15 launch, with significantly shorter wait times seen across key regions, especially for the iPhone 16 Pro models. In the U.S., the iPhone 16 Pro Max had a 26-day wait time, down from 41 days for the iPhone 15 Pro Max. China also showed weaker demand, with the iPhone 16 Pro Max’s wait time dropping to 18 days from 36 days for the iPhone 15 Pro Max.

Global pre-order volumes for the iPhone 16 are estimated to be down by mid-teens percentage year-over-year, according to Barclays’ supply chain contacts. The roll-out of Apple Intelligence, a key feature of the iPhone 16, has been delayed until 2025 for certain markets, potentially dampening enthusiasm for the new device. Despite the earlier launch of the iPhone 16 giving Apple two extra days of sales in the September quarter, Barclays maintains its Underweight rating and $186 price target on Apple, suggesting subdued demand unless sell-through improves in the future.