Apple’s iPhone 16 demand has reportedly underwhelmed, with signs of weaker-than-expected consumer interest emerging soon after launch. According to TF Securities analyst Ming-Chi Kuo, Apple employees can already buy the iPhone 16 at a discount, an unusual move as they typically have to wait several weeks after release. This, Kuo suggested in a post on X (formerly Twitter), may be an indicator of subdued demand for the device.
In the first weekend since the iPhone 16’s debut, Apple sold approximately 37 million units—about 13% lower than iPhone 15 sales during the same period last year, Kuo noted in a blog post. He pointed to lower-than-expected demand for the iPhone 16 Pro lineup as the primary cause, particularly because Apple’s highly anticipated “Apple Intelligence” feature was not available at launch.
Apple Intelligence, an AI-driven suite of features integrated into Safari, Notes, Calculator, and Siri, is scheduled for an October release as a beta update, with broader capabilities to follow. The delayed availability of these features has diminished the Pro models’ appeal, according to Kuo. Although demand has gradually improved in the U.S., with delivery times for the iPhone 16 Pro now extending to two to three weeks in several major cities, it still trails the levels seen with last year’s iPhone 15 release.
Apple and analysts were hoping the launch of these new AI features would trigger an upgrade “super cycle,” propelling a new era of growth. However, recent research indicates only 18% of consumers upgrade their iPhones due to new features, with most opting to replace their devices only when necessary, such as when they become outdated, damaged, or lost.
In China, Apple faces intensified competition from domestic smartphone makers like Huawei, adding further challenges to its iPhone 16 sales performance.
