🔺 What to do when markets are at an all-time high? Find smart bargains, like these.See Undervalued Stocks

Barclays sees muted demand for iPhone 16

Published 09/23/2024, 08:29 AM
Updated 09/23/2024, 08:31 AM
© Reuters Barclays sees muted demand for iPhone 16
AAPL
-

Barclays analysts said in a note Monday that they see muted demand for Apple's (NASDAQ:AAPL) iPhone 16 based on shorter lead times and channel checks during the first week of pre-orders.

According to Barclays, the early signs are "not encouraging," as both the Pro and base models have seen a weaker response compared to last year's iPhone 15 launch.

The note highlights significantly shorter wait times across key geographies, particularly for the iPhone 16 Pro models.

In the U.S., the iPhone 16 Pro Max’s lead time during the first week was just 26 days, compared to 41 days for the iPhone 15 Pro Max. Barclays adds that similarly, the iPhone 16 Pro had an 18-day wait, down from 25 days last year.

In China, where demand is considered a crucial indicator for Apple, the iPhone 16 Pro Max wait time is said to have dropped to 18 days, from 36 days for the iPhone 15 Pro Max.

Barclays believes the shorter lead times and lower demand signal "weaker than expected demand, especially across the US and China," where consumer spending has softened.

Additionally, global pre-order units are estimated to be down by mid-teens percentage year-over-year, according to the firm's supply chain contacts.

The roll-out of Apple Intelligence, a key feature for the iPhone 16, is delayed until 2025 for markets like China and parts of Europe. Barclays believes the delay could dampen enthusiasm for the new model.

The bank also pointed out that the earlier iPhone launch gives Apple two extra days of sales for the September quarter, but this is unlikely to offset the weaker demand trends.

With these headwinds, Barclays maintains its Underweight rating and $186 price target on Apple, suggesting that iPhone 16 demand may continue to lag unless sell-through improves in the coming months.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.