Fri Sep 20 12:15:00 UTC 2024: ## Apple’s iPhone 16 Sales Lag Behind Expectations Despite AI Hype
Apple’s latest iPhone 16, boasting the company’s first artificial intelligence-powered features, hit stores last Friday but initial sales have fallen short of expectations. While the phone runs on iOS 18, the highly anticipated “Apple Intelligence” suite of AI features will only be available via a software update next month.
This staggered release has dampened demand for the iPhone 16 Pro models, a key selling point for Apple. Analyst Ming-Chi Kuo reported that first-weekend sales of the iPhone 16 were down nearly 13% compared to last year’s iPhone 15 launch, attributing the decline to weak interest in the Pro models.
However, T-Mobile CEO Mike Sievert refuted claims of weak demand, calling them “nonsense” and emphasizing that sales were “better than last year,” with consumers opting for the more expensive Pro and Max models.
Despite initial concerns, Jefferies’ analysis suggests that demand for the new iPhone lineup is gradually improving in the U.S., with delivery times for the iPhone 16 Pro stretching to two to three weeks in major cities. However, this remains below last year’s levels.
Research indicates that only 18% of consumers upgrade their smartphones due to new features, with most opting to upgrade only when their current device becomes obsolete, stolen, or damaged.
Alongside the iPhone 16, Apple also launched the Apple Watch Series 10, Apple Watch Ultra 2, and new AirPods models.
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