In Monday morning trading, Apple experienced a 3.6% drop in its shares following reports indicating lower-than-expected demand for the new iPhone 16. TF Securities analyst Ming-Chi Kuo highlighted in a note that sales during the opening weekend were down 12% compared to last year's iPhone 15 sales. Kuo attributed this decline to various factors, one of them being the delayed availability of Apple Intelligence, a key selling point of the new models, which will only be accessible in beta next month.

Furthermore, analysts at Bank of America and JPMorgan also expressed concerns about shipping times impacting demand for the latest iPhone Pro models when compared to previous years. Kuo, after analyzing pre-order sales, average delivery times, and shipments before pre-order, stated that reduced demand for the iPhone 16 Pro series was a key factor.

The delayed availability of Apple Intelligence is seen as a contributing factor to the lower demand for the new iPhones. Intense competition in the Chinese market also continues to impact overall iPhone sales. In response to this, Barclays analysts noted that pre-order units in China were down year-over-year, particularly for the pro models, while base and plus models demonstrated year-over-year growth. The introduction of Apple Intelligence in the Chinese language is not expected until CY2025, which may dampen enthusiasm for the iPhone 16 among Chinese consumers. Additionally, weak macroeconomic conditions and intense competition further weigh on iPhone sales in China.

During an event at its headquarters in Cupertino, California, Apple unveiled new versions of the iPhone, AirPods, and Apple Watch. Pre-orders for the new iPhones began last Friday, with the official launch scheduled for September 20th. However, the absence of Apple Intelligence features at the time of the iPhone 16 release may have impacted initial sales.

JPMorgan analysts analyzed delivery lead times as an indicator of demand and found that the initial demand for the base models of the iPhone 16 was similar to that of the iPhone 15 series during its first week of pre-orders. However, early demand for the Pro models appeared to be slightly softer compared to last year's Pro models.

Bank of America analysts observed that the ship dates for the iPhone 16 Pro and Pro Max models were extended, albeit to a lesser extent than in previous years at this stage of the pre-order cycle. Although extended ship dates may reflect demand, other factors such as supply, inventory, allocation, and pricing could also affect the shipping timeline.

To boost sales in certain markets, Apple reduced the prices of the iPhone 16 in Australia and India. The iPhone 16 Pro and Pro Max models are regarded as the premium options, boasting enhanced screens and cameras compared to the regular models. Priced at $999 and $1,199 respectively, these Pro models feature the thinnest borders of any Apple product and utilize lightweight titanium that is more scratch-resistant than other forms of the metal.

Apple emphasized during its event that the iPhone 16 Pro Max offers the best battery life ever seen in an iPhone, but the company did not disclose further details regarding battery performance.

Apple's shares took a hit due to the lower-than-expected demand for the iPhone 16, resulting in a 3.6% decline during Monday morning trading. With concerns about delayed access to Apple Intelligence and potential impact from shipping times, Apple will need to carefully strategize to maintain consumer interest in its latest iPhone models.