Apple’s much-anticipated iPhone 16 launch has hit a stumbling block, with pre-order numbers falling short of industry expectations. According to a report from TF Securities analyst Ming-Chi Kuo, global demand for the iPhone 16 family, which went on pre-sale last Friday, is significantly lower compared to the iPhone 15 series from last year. The analysis, based on Apple’s supply chain data and online delivery estimates, reveals a marked dip in consumer interest—particularly in the higher-end iPhone 16 Pro models.

Sales Numbers Reveal a Slump

Over the first weekend of pre-orders, Kuo estimates that 37 million units of the iPhone 16 lineup were sold—a 13% decline compared to iPhone 15 sales during the same period last year. While the base models, iPhone 16 and iPhone 16 Plus, outperformed their predecessors, it was the Pro and Pro Max versions that saw a significant drop in demand. Kuo’s data points to a 27% decline in iPhone 16 Pro sales and a 16% decrease for the iPhone 16 Pro Max.

This downturn is particularly notable given that Apple’s Pro models have historically driven the bulk of iPhone revenue. In past years, Pro versions have attracted tech enthusiasts and early adopters, but the iPhone 16 Pro models seem to have faltered in drawing the same level of enthusiasm.

Delayed AI Features: A Key Factor?

Kuo attributes part of the sluggish demand for the iPhone 16 Pro models to a delay in Apple Intelligence AI features. While Apple is gearing up to introduce new AI-powered capabilities with the iPhone 16 series, these functionalities won’t be available at launch. They are expected to roll out in iOS 18.1, scheduled for release in October—but initially only in the United States. Other countries will see the new features even later, creating a staggered release that could be tempering excitement around the higher-end models.

The delayed introduction of AI-powered features, which were anticipated to be a major selling point for the Pro models, has likely led potential buyers to hesitate. Consumers eager to experience Apple’s leap into artificial intelligence may now be holding off until the feature set is fully implemented.

Global Competition Heats Up

Another key factor affecting iPhone 16 sales is the fierce competition in China, a crucial market for Apple. Chinese brands, particularly Huawei, Xiaomi, and OPPO, have rapidly caught up with Apple in terms of innovation and pricing, offering consumers highly competitive alternatives. This intensified competition comes at a time when China’s domestic smartphone industry is booming, and local brands are successfully catering to both the budget-conscious and premium segments of the market.

China is not just a large market for Apple; it’s a battleground for premium smartphone brands. The rise of homegrown competitors has eaten into Apple’s dominance, and the weaker-than-expected sales of iPhone 16 Pro models in the region are a testament to this growing challenge.

What’s Next for Apple?

Despite the lower-than-expected demand for the iPhone 16 series, Apple’s future could still be shaped by the upcoming iOS 18.1 update. The new AI functionalities, set to debut in the next software update, have the potential to drive a second wave of demand—especially if Apple can successfully market these features once they are fully available across regions.

However, the current landscape reveals a need for Apple to rethink its global strategy. Delayed AI features, fierce competition from Chinese brands, and fluctuating consumer interest in the Pro models signal that Apple may need to adapt its approach in order to reclaim market share and maintain its dominance in the smartphone sector.

As the official launch date of September 20 approaches, all eyes will be on Apple to see whether they can turn things around with the full release of the iPhone 16 family. For now, it seems that artificial intelligence delays and rising competition have created a more challenging environment for the tech giant than in previous years.

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