The launch of the new iPhone models has not ignited the expected excitement.
Despite new artificial intelligence features, early sales are lagging.
Early pre-sale estimates suggest that the new iPhone models have not met initial expectations. A notable decrease in pre-sales figures indicates a less enthusiastic response compared to previous launches.
An estimated 37 million units were sold during the first weekend, representing a more than 12% decline from last year’s figures, according to Ming-Chi Kuo, an Apple analyst with TF International Securities.
The high-end versions of the device, notably the Pro and Pro Max, have seen a significant drop in demand. This shift could dramatically affect the average selling price and overall revenue.
During the inaugural weekend, sales of the Pro models fell by 27%, while the Pro Max versions saw a 16% reduction compared to the previous year.
Interestingly, there has been a higher demand for the lower-priced models. The standard and Plus models have slightly outperformed their predecessors in sales.
Analyst Angelo Zino pointed out that this shift could be due to the substantial upgrades in the standard devices’ cameras and internal processors, making them highly competitive with the Pro models.
The delivery lead times for the Pro models are significantly shorter this year. Orders for these models were fulfilled within 1-2 weeks during the pre-sale period, compared to 3-4 weeks for last year’s models.
This could indicate improvements in the company’s supply chain efficiency, allowing faster production and delivery.
The much-publicised artificial intelligence features integrated into the new models are not yet available. These features are expected to roll out next month, potentially boosting sales then.
It appears the promise of AI capabilities alone has not been sufficient to drive the initial sales surge that was anticipated.
Analysts offer a mixed outlook. While some indicators suggest a slow start, other factors could point to a positive trend over the long term.
Mike Sievert, T-Mobile CEO, reported higher first-week sales for the new models compared to the previous year’s release.
Analysts advise that it is still early days for the new models. The true test will likely come in the upcoming holiday season.
Dan Ives of Wedbush remains optimistic, stating, ‘It’s all about a monster holiday quarter and the supercycle begins for the new models in our view.’
Although the launch has not met initial expectations, analysts believe that better days are ahead for the new models.
The holiday season and the roll-out of AI features may yet boost sales and consumer interest.
