Apple loses over $116 billion. Reason: You can get iPhone 16 in just 14 days

Apple shares dropped nearly 3% as analysts noted weaker demand for iPhone 16 Pro models, attributed to delayed AI features.

Shares of Apple fell nearly 3% after some analysts said delivery times for the new iPhone 16 Pro models indicated weaker-than-expected demand. This could be possibly due to the delayed rollout of key artificial intelligence features. Apple last week unveiled its long-awaited iPhone 16 series designed around its AI software- Apple Intelligence.

Apple's stock fell almost 3% amid concerns over iPhone 16 Pro demand, linked to delayed AI features. Early shipping times are shorter than last year's models.(AP)

Early pre-order data from BofA Global Research showed shorter global shipping times for the iPhone 16 Pro models compared with last year's 15 Pro models. Ship time on average for the iPhone 16 Pro stood at 14 days which is lower than 24 days for iPhone 15 Pro last year. For iPhone Pro Max, the shipping time stood at 19 days as compared to 32 days last year.

Ming-Chi Kuo, a Taiwan-based analyst at TF International Securities, said in a blog post, “The key factor is the lower-than-expected demand for the iPhone 16 Pro series ... the major selling point, Apple Intelligence, is not available at launch.”

First-weekend pre-order sales for the iPhone 16 Pro and Pro Max models were down 27% and 16%, respectively on which Jefferies analysts said, “The US is much weaker than last year, unless Apple massively increased supply allocation.”

Some experts also said that improving supply of the Pro models could have led to shorter shipping times this time around as D.A. Davidson analyst Gil Luria said, “We are not concerned if pre-orders don't show meaningful growth. The (AI) features will be rolling out gradually ... which means the upgrade cycle will likely materialize over the next 12-18 months.”