Ming-Chi Kuo: There’s no Apple iPhone 16 ‘supercycle’

Apple should be unhappy with iPhone 16 sales numbers. Apple analyst Ming-Chi Kuo compiled data from a supply chain survey and pre-order results from official websites. It suggests the new iPhones are not selling as expected.

According to the report, pre-orders for the Apple iPhone 16 series in the first weekend are estimated to be about 37 million units. This is approximately down 12.7% year-on-year compared to the iPhone 15 line’s first-weekend sales.

In addition, the demand for iPhone 16 Pro and Pro Max is lower than expected. It comes as quite a surprising move as Apple debuted an even more powerful chipset, expanded the Telephoto camera to the Pro model, and fueled AI capabilities.

Has Apple Intelligence failed?

Apple partnered with OpenAI to bring AI capabilities to the iPhone. The iOS 18 introduces AI features on the iPhone 15 Pro and iPhone 15 Pro Max. The Apple Intelligence suite is coming across the iPhone 16 models.

Lower than-expected sales suggest Apple Intelligence made no impact on sales. The non-Pro models also bring AI capabilities and have a dedicated Camera Control button too. However, consumers don’t consider them a reason to upgrade.

It is also possible that the sales may be boosted in the next couple of weeks. The reason is, that AI features won’t be available in the iPhone 16 series when they start to deliver. Rather, Apple planned to roll out in batches starting in October.

In addition, intense competition from Huawei in China is impacting iPhone demand over there. Well, Kuo says the US tech giant would not reduce its production, and it’s expected to go on as previously decided.