Fri Sep 20 08:32:01 UTC 2024: ## iPhone 16 Resale Prices Crash on Launch Day, Signaling Weak Demand in China
**Hong Kong, September 20** – The iPhone 16 has experienced a disastrous launch day in Hong Kong’s bustling resale market, with prices plummeting within hours, according to a note from investment bank Jefferies. By 1:30 PM, dealers in the Mongkok area had stopped buying most iPhone 16 models, indicating a sharp decline in demand compared to last year’s iPhone 15 launch.
Analysts attribute the slump to a combination of factors, including a lack of significant hardware upgrades, lower trade-in values, and increased supply of the highly sought-after Pro Max model. The iPhone 16 Plus, initially sold out on official websites in Hong Kong and China, saw its premium vanish within the first hour, a stark contrast to last year’s model which took four days to reach a similar price point.
Even the Pro Max, initially boasting a premium of 15% to 24%, saw its markup dwindle to 4% to 17% within two hours. This unexpected shift raises concerns about overall demand, particularly in China, a crucial market for Apple.
“This supports our cautious view on China demand,” Jefferies analysts stated. They noted that the initial resale market performance often mirrors broader consumer trends, making the lackluster iPhone 16 launch a potential indicator of wider challenges for Apple in the region.
While the iPhone 16 Plus appears to have sold out, analysts believe there is still stock available on Chinese platforms, with Hong Kong deliveries only taking 10 days. This suggests that the initial demand may be weaker than anticipated.
Despite the discouraging start, Jefferies remains hopeful about the potential for a rebound in demand following the launch of Apple’s AI services in the U.S. next month. Whether this can reignite consumer interest in the iPhone 16 and drive a stronger market performance remains to be seen.
First Piper 