iPhone 16 Pro Demand Has Been Lower Than Expected, Analyst Says

[Dawn of Individual Merit]

Weren't they thinking that this year would be an upgrade supercycle, too?

That's what happens when the corporate suits think people will buy anything to do with AI, just because they believe their own hype.

 

[x86dude]

I would have thought the USB-C port on iPhone 15 caused a sales bump.
These numbers for iPhone 16 may be a return to normal.

 

[FreeWoRLD83]

Let’s not forget, this is Apple. While we focus on the present, their horizon is much wider as a huge business.

With the economic downturn and cautious spending, they likely expected much lower sales this year no matter how good they would do. Add in the cost of AI R&D, and it seems they chose to scale back on hardware.

And yeah, I bet they planned this three years ago.

 

[maxoakland]

You’re telling me the thinner bezels didn’t get people to upgrade?

They really aren’t even that impressively thin. They just look normal to me

 

[Tsepz]

No real point in me going from 15 Pro Max to 16 Pro Max, given the fact that the 15 Pro Max is getting Apple Intelligence, already has a Titanium build, already has USB-C, same NPU, same amount of RAM and mostly the same camera setup as the 16 Pro Max, lol.
The key feature I am interested in are mostly the same or only slightly saw an improvement.

Happy to wait for an iPhone Pro Max that:
1. Has more RAM (12GB at least)
2. Improved optical zoom
3. Significantly better SoC (preferably a newer processor node)
4. Brings major changes in Apple Intelligence (something hardware dependent)

 

[maxoakland]

I find it difficult to justify buying a phone at these prices. Not sure what I’m going to do once my 14 pro max is due for an upgrade. Most people are buying these on monthly instalments now. I hate that everything we own now has some sort of monthly payment or subscription. Done with it.

But a used upgrade. That’s what I did

 

[Kulfon]

If I am to make a guess why, it is the competition from China and other brands like Pixel. I have never considered a different brand before, but now I am. I just do mot see difference from 13 pro to 14 pro, 15 pro and etc. Also do not like the fact that Apple is milking the same cow to death. Lack of innovation is the reason.

 

[ikir]

hmmm, so that's what happens when you dripfeed new features year after year. not surprised

Things don’t need to change drastically every year. The jump in speed and new features are impressive, but users gets bored and expect a revolution every launch.

 

[gadget123]

The IPhone 16 is a great phone most don’t care about 60hz display. Next year it will be 120hz and a slimmer IPhone 17 slim or IPhone 17 air so Pro sales will be even less. I tried the IPhone 15 vs Pro and there’s little difference.

 

[User 6502]

I am sure also that using the same A18 chip (A18 pro just has 6 vs 5 GPU cores ... mostly irrelevant) in the iPhone 16 and iPhone 16 Pro is also doing no favors to the Pro sales.

Pro buyers are getting it for the screen (OLED, Promotion, and to a lesser extent "always on") and the telephoto camera. But those features have been present in various incarnations for years (2017 OLED, 2021 Promotion, 2022 "always on" and 5x telephoto on Pro Max)

It’s not the same chip and historically it’s always been the case. They have only changed this approach very recently and people rightfully complain as the standard iPhone is priced at a level that doesn’t justify one year old tech. The strategy to sell more iPhone pro is to give it something genuinely exciting, not to nerf the standard iPhone, otherwise the result will be overall less sales, which what has been happening for a while now.

 

[colfourbin]

My wife and I are getting the 16 Pro, but we are coming from the 12 and 12 Pro. This is the longest we have ever kept a phone and it makes upgrading an easier decision.

 

[Kottu]

I have never seen that a new iPhone is in fact cheaper than last year’s during release. I am paying 15 dollars more per month more for my 15PM in Sweden. So, Apple became generous like they were few years back. That means Apple knew that 16 may not sells as good as they did with 15. @ my carrier 16PM 512GB costs $1700 with taxes now. Around $300 cheaper than at Apple. Yes $ was strong against SEK last year but price difference at Apple Store is just $50.

 

[bellnen]

Things don’t need to change drastically every year. The jump in speed and new features are impressive, but users gets bored and expect a revolution every launch.

I personally don't think there is a need for a revolution at every launch for people to get excited. But Apple needs to better than with the 16 Pro's. It just feels like an S moment. Also, there is not much anymore between the regular and the Pro. A camera and 120hz. Normal people don't care about the 5x zoom. Normal people don't care about the 120hz.
We of course as tech enthusiasts we do notice all that.

But honestly, this year just does not cut it. Even people out of my family that basically **** money don't see the reason to go through the hassle of changing phone.

 

[bellnen]

I have never seen that a new iPhone is in fact cheaper than last year’s during release. I am paying 15 dollars more per month more for my 15PM in Sweden. So, Apple became generous like they were few years back. That means Apple knew that 16 may not sells as good as they did with 15. @ my carrier 16PM 512GB costs $1700 with taxes now. Around $300 cheaper than at Apple. Yes $ was strong against SEK last year but price difference at Apple Store is just $50.

Prices in Europe are to high. Simple as that. People are looking at older or cheaper models.

 

[Unami]

Thank god people are buying less pros and apple is not getting away with selling pretty boring, big and heavy €1200 phones as the "new normal"

 

[Ivander]

I’m curious about the people who complain about the lack of upgrades on the 16s. What kind of changes would meet your expectations? They come with bigger screens, longer battery life, better chips, improved cameras, enhanced microphones, better thermals, slimmer bezels, faster charging speeds, a new hardware button—you name it.

 

[upthetoffees]

Call me insane/apple fanboy/both who started out using a ZX spectrum 48k computer in 1985 and now using Macbook Pro 14" w/ 128gb ram. I luckily found a job that combines both love for computers, technology, and images/video. I used to upgrade iPhone every 2-3 years but life is short and I have now upgraded every year(14/15/16) as a lot of my work needs to be delivered very quickly and minutes count. I now edit 4k video on 15 Pro Max, upload edited video via google drive to client, sort/caption/transmit 50megapixel files and ftp them to client. I can leave the Mac at home now and that is a HUGE advantage. The USB-C port changed everything. Every cent I have put into apple gear has been paid back 5x and more in work. If I can get 15-20% faster chip and 2-3 hours extra battery life on 16 Pro Max it will be worth the upgrade. In the past I have handed down my phones to close relatives but this year since my immediate family all upgrade to 15 pro/max I will trade in the 14 and keep the 15 for gift it to sibling when I visit them abroad. For me the more expensive the tool the more advantage one can get from it for a certain amount of time.

Speccy was awesome!

 

[xDKP]

I kinda doubt that that’s the main reason.

Yeah I kind of don’t care at all really

 

[omenlo006]

“intense competition from China”..... lets break that down:
1) Lots of new features that ARENT availabe at launch
2) Those same features specifically indefintely unavaliable in China, thier biggest market
3) Customers in china have been quite vocal that the antennas used in iphones are not as good as the ones in android phones, not only in chinese branded phones. Samsung, Nothing for instance both have better reception than iphones
4) design in china for flagship models is off the fricking rails here. Have a look at Xiaomi, Huawei, etc....
5) apple could've easily spend more money on R&D in the country that has the biggest potential for making the money (yes, China) to have eveything available sooner if not at launch to generate more interest and boost demand, and still...

Notice how I didn't even mention price, because Huawei has some phones that go well beyond what a maxed out iphone 16 pro max would go for
Now I know it sounds like a complain but its not. It's more someting that you could've seen coming.
I know that design elements have and give a brand identity but there only so much you can squeeze the same thing over and over again while flashing it as new.
Still.... I cannot live without my iphone since I'm a white guy living in China, so I have to have an android phone with me as well as an iphone because of work and convenience.

For all these reasons I trully wish the ipod touch was still a thing. You could get the best of both worlds and still be happy.

 

[DrWojtek]

Lots of people pointed out that if the main selling point was Apple Intelligence, and 99% of those features are available on last year’s iPhone, why would you upgrade? I don’t know how Apple didn’t see this coming.

Well, everything is available on iPhone 11. Since there are third party apps, and everyone who is interested in AI is already using that. And the people who don’t sure don’t want it. Big mistake of Apple to focus the marketing on AI.

Funny thing is, the hardware wasnt even built with this kind of AI in mind, contrary to what they say, and now it turns out they would have been better off not.

 

[cptcaveman]

Every or most of the year analysts put out demand is low reports with caveats. This is the way out, sales picked up as Apple intelligence is closer to release. It’s like the boy who cried wolf when Apple releases the quarterly numbers. It will be interesting to look at actual numbers on iPhone revenue and see. If the revenue goes down.

It's worse than you might think. Selling fewer Pro phones and more regular phones not only means less revenue overall but, more importantly for Apple, substantially less margin.

Also, preorders come from some of Apple's most loyal customers and biggest fans, with later buyers in the cycle more discerning and not as loyal. Sales in coming weeks are at risk of dropping off dramatically.

I predict early sales on iPhones this cycle, potentially even from Apple directly.

 

[LimpHamster]

Seems like the demand in Sweden is lower than ever before at least, my carrier always had extremely high demand on new iPhones but does not seem to be that difficult to get this time. As well as ive heard people say they think the AI featuers are cool but when they hear its not available in EU its a "oh, disappointing, ill skip this one then".

 

[Velroy]

Well, no surprise to anyone. Why would anyone on a 12 or newer bother? There is nothing new from last year's model, it's just an incremental spec bump.

Apple intelligence is not a feature, it's just a future promise. Is it even coming this year to any country?

And especially since I'm living in a country with a small language, we'll get it in five years because Apple won't allow us to use anything in English either before it's been translated to my language first. So I might as well upgrade to the iPhone 19 when it finally gets Apple Intelligence

 

[pappl]

Zero Innovation, 60Hz only, no AlwaysOn Display, a shi**y camera button as only new hardware feature, no Apple Intelligence for most parts in the world, 1000 Euro/Dollar for this piece?

Are they drinking nitro thinner?

 

[2540497]

I believe it.
Apple fatigue?

I've ordered the normal model this year. No real difference between 16 Pro and 16 this year. Can live without 120hz and 5x zoom.