Early iPhone 16 Sales Are ‘Muted’ But That Is ‘Likely Due To The Unavailability Of AI Capabilities,’ Analysts Believe Apple Intelligence May Generate Sales Momentum

wccftech.com:

Apple was estimated to have recorded an unsatisfactory number of pre-orders this year for the iPhone 16 series, with the ‘Pro’ models reportedly garnering 12.7 percent fewer pre-sales compared to the iPhone 15 Pro and iPhone 15 Pro Max from 2023. Only the iPhone 16 Plus managed to offset the seemingly low demand by accumulating 48 percent higher pre-orders for the iPhone 15 Plus.

There can be various reasons why customers are simply not interested in upgrading to the newer models. One of them is the lack of a design change, and while Apple has addressed various concerns with the latest lineup that customers voiced about the iPhone 15 family, it appears that internal hardware improvements are insufficient to warrant an upgrade. However, according to analysts, another reason is the unavailability of AI features, and when Apple Intelligence officially drops later this year, things could change massively for the technology giant.

Related Story Here Is How Much Revenue Qualcomm Will Generate From Its 5G Modem Sales To Apple’s iPhone 16 Series, Assuming The Initial Shipments Target Is Achieved

Overall, analysts estimate that Apple will ship around 76 million iPhones in the fourth quarter of 2024

Investors’ notes from JP Morgan analysts that were spotted by AppleInsider state that there is ‘more muted momentum’ in early orders, particularly for the iPhone 16 Pro and iPhone 16 Pro Max. In total, the California-based titan was previously reported to have prepared 17 million units for pre-order, but the lack of positive reception could be ‘likely due to the unavailability of AI capabilities.’ Even right now, the official iPhone 16 product pages have ‘Apple Intelligence’ plastered all over to market the company’s slew of generative AI features, but there is nothing to show for it.

However, JP Morgan analysts state that Apple Intelligence was not even in the top five reasons people wanted to upgrade, coming in sixth place instead. Another disadvantage here is that Apple