‘Still cautious’ on China iPhone 16 demand- Jefferies
Jefferies said it remained cautious over demand for Apple Inc's (NASDAQ:AAPL ) new iPhone 16 in China, as its availability on third-party platforms within the country signaled some weakness in end-user demand.
Jefferies said while the new 16 and 16 pro models appeared “sold out” on Apple’s China website, third-party platforms such as Tmall and PDD still appeared to have stocks of the new models readily available, which could bode poorly for demand.
The brokerage noted that delivery time for both pro models on the Apple website in China had not increased since pre-orders started, while delivery time on Tmall had fallen. PDD also still had both pro models available for delivery before September 30.
The brokerage performed a second check on pre-order delivery times for the iPhone 16 across six major markets- China, Hong Kong, the U.S., UK, and Germany. Its first check- performed on September 15- showed lackluster demand in the first two days of the iPhone becoming available. iPhone pro demand improving outside China
Jefferies noted that demand for pro models outside China was improving outside China. There were now wait times for the 16 pro, compared to earlier signs showing the model was available for delivery within two-three weeks.
Similar trends were observed in the UK and Germany, while wait times in Japan remained stable.
“The average delivery lead time in the US for 16 pro max has stayed at 3-4 weeks, whereas at this time last year it had stretched to 5-6 weeks,” Jefferies said in a note.
The iPhone 16 line is Apple’s first foray into incorporating generative artificial intelligence into its devices, although the technology giant did flag a staggered roll-out of its AI features in the coming months.
The company is banking on AI features to fuel a resurgence in iPhone sales, which have been lagging for over a year. China in particular has been a major point of contention for sales, amid heightened competition in the country.
Source: Investing.com