Apple iPhone 16 Pre-Orders Show Possible Low Demand, One Sign Could Point To Company Break With This Employee Rule

A well-known Apple Inc AAPL analyst and iPhone sales forecaster is predicting weak demand of the iPhone 16 with a new hint that expectations may not be met.

What Happened: Apple unveiled the iPhone 16 last week and highlighted several new features including its Apple Intelligence generative AI that will be rolled out to consumers.

Early pre-order data shows demand for the iPhone 16 may be lower than expected due to a lack of reasons for existing iPhone owners to upgrade to the latest model.

Apple analyst Ming-Chi Kuo recently said pre-order sales for the iPhone 16 have reached 37 million units.

On Wednesday, Kuo shared another sign that demand could be low.

"Apple employees can already purchase the iPhone 16 with their employee discount. Typically, employees have had to wait several weeks after the release of new iPhone models before being able to buy. This could be another sign that the early demand for the iPhone 16 is below expectations," Kuo tweeted.

Kuo's recent 37 million estimate comes from pre-order data from Apple and supply chain surveys. Average delivery times and shipment volumes could indicate weaker demand for the more expensive iPhone Pro models, Kuo also said.

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Why It's Important: Smartphone competition in global markets such as China could be hurting demand for the iPhone 16 along with weak reception to the Glowtime event and the new features.

With many consumers expecting more integrated AI features, the lack of AI features and slow rollout of Apple Intelligence could be a disappointment.

While it remains to be determined what the official sales figures for the iPhone 16 in 2024 and beyond are, initial iPhone 16 leaks aren't suggesting strong results.

Analysts could lower price targets and financial expectations as more data becomes available.

Pre-orders for the iPhone 16 began on Sept. 13 with initial deliveries on Sept. 20.

AAPL Price Action: Apple stock closed Wednesday up 1.80% at $220.69 versus a 52-week trading range of $164.08 to $237.23. Apple stock is up 18.9% year-to-date in 2024.

Read Next:

• Apple Analysts Mixed After Glowtime Event: iPhone 16 Could ‘Drive Upgrades,’ But ‘Next Year Will Be Better’

Photo: Courtesy Apple