CUPERTINO, Calif. — Apple's (AAPL, Financial) iPhone 16 Pro models met sales expectations, while demand for the base iPhone 16 and 16 Plus remains compared to 2023, according to Ming-Chi Kuo, an analyst at TF International Securities. He noted on Wednesday, Oct. 9, that despite the uneven results, Apple continued maintaining assembly orders for the iPhone 16 Pro models, particularly during China's National Day holiday, signaling healthy demand.
Subsequently, component orders for the base models have been reduced, but the cuts are minimal, with a decrease of around the 5% mark. Moreover, shipping times for the iPhone 16 Pro are much shorter than its predecessor, the iPhone 15 Pro, indicating a more a stable launch.
Furthermore, AI-powered features, including Apple Intelligence, are set to launch in late October and are likely to be a major catalyst in spurring U.S. demand, with analysts forecasting a super cycle driven by AI monetization. Wedbush analyst Dan Ives predicts high single-digit sales growth for the iPhone 16, with potential for double digits by the fourth quarter.
As per the current results, Apple is likely to ship 88 million to 89 million units this quarter, roughly in line with 90 to 91 million, positioning the tech giant for strong momentum ahead.
