iPhone 16 Pro demand falls short in first weekend pre-orders

Apple’s iPhone 16 Pro model is seeing weaker demand than expected following its release, according to a report by analyst Ming-Chi Kuo. Based on a supply chain survey and pre-order data, Kuo’s findings highlight a noticeable drop in first-weekend pre-orders for the iPhone 16 Pro, raising concerns for Apple’s premium smartphone sales strategy.

iPhone 16 Pro demand lower than expected

Kuo reported that Apple saw approximately 37 million units pre-ordered during the first weekend for the iPhone 16 series. This figure represents a 12.7% year-over-year decline from the iPhone 15 series’ pre-order performance last year. The iPhone 16 Pro, in particular, has struggled to meet the expectations that Apple and analysts had set, with delivery times shortening and sales lagging behind previous models.

The lower demand for the iPhone 16 Pro suggests that customers may not be as enthusiastic about this iteration’s new features, with Kuo pointing out that Apple’s latest AI-driven feature, Apple Intelligence, is not yet available at launch. This delay, combined with strong competition in international markets like China, may have contributed to the iPhone 16 Pro’s slow start.

One indicator of the lower-than-expected demand is the notably shorter delivery times for the iPhone 16 Pro compared to its predecessor, the iPhone 15 Pro. Typically, longer delivery times reflect higher demand as supply chains struggle to keep up. However, Kuo’s analysis suggests that pre-production shipments for the iPhone 16 Pro were higher than usual, which, combined with reduced consumer interest, led to shorter wait times.

Despite the sluggish demand for the Pro model, the standard iPhone 16 and iPhone 16 Plus versions fared better in terms of year-over-year pre-order sales. Yet, their contribution to overall iPhone shipments remains limited, as Apple’s high-end Pro series typically drives the most revenue.

Competition to blame?

The fierce competition in China’s smartphone market is another factor affecting the iPhone 16 Pro’s sales. Chinese manufacturers continue to challenge Apple’s dominance with feature-rich smartphones at lower prices, which could explain why the iPhone 16 Pro is struggling to gain traction in this critical market.

Although the iPhone 16 Pro demand is lower, Kuo remains cautious about making any predictions for Apple’s future production strategies. The company may be banking on the launch of Apple Intelligence in the fourth quarter of 2024 to boost sales, along with upcoming promotional events like the holiday season and China’s Double 11 shopping festival.

If Apple’s strategies, such as the introduction of the tetraprism camera and maintaining current pricing, fail to reverse the iPhone 16 Pro’s slower sales, Kuo believes the tech giant may resort to more aggressive pricing and product strategies in 2025. For now, the iPhone 16 Pro demand remains lower than anticipated, casting a shadow over the company’s near-term sales outlook.