Apple welcomed customers worldwide on Friday for the launch of the iPhone 16, Apple Watch Series 10, and AirPods 4. These new products were announced earlier this month and became available for pre-order on September 13. At the Fifth Avenue Apple Store in New York City, the iconic glass cube was illuminated in celebration of the enhanced Siri, which will light up the borders of the new iPhone’s screen when the feature is rolled out next month.
The latest iPhones represent Apple’s push into artificial intelligence, introducing new features—set to launch in October—that will allow users to rewrite text, remove objects from photos, and interact with an improved Siri. However, these advancements will only be available on the iPhone 16 and last year’s iPhone 15 Pro models.
Despite the excitement, Apple’s shares dipped on Monday following analyst reports suggesting lower-than-expected demand for the new devices. TF Securities analyst Ming-Chi Kuo noted that first-weekend sales were down about 12% compared to the iPhone 15 last year. Analysts from Barclays, JPMorgan, and Bank of America also observed that shipping times could indicate weaker demand for the pricier iPhone Pro models this year.
In a conversation with CNBC’s Steve Kovach outside the Fifth Avenue store, CEO Tim Cook commented on the sales outlook, saying, “I don’t know yet. It’s only the first hour, so we’ll see.”
UBS analysts cautioned investors against overreacting to what appears to be slower sales, pointing out that wait times for new iPhone models were longer last year due to supply chain issues. They noted that ahead of the iPhone 16 launch, the absence of a standout feature and a somewhat underwhelming introduction of Apple Intelligence could dampen demand.
The analysts highlighted that while data from various models and regions a week after launch suggests that a sales super-cycle is not imminent, the Apple Watch Series 10 boasts a larger screen and new features, including Sleep Apnea detection. The AirPods 4 come with a redesigned smaller charging case and an option for noise cancellation.
