‘Still cautious’ on iPhone 16 demand in China – Jefferies By Investing.com

Investing.com– Jefferies said it remained cautious on demand for Apple Inc’s (NASDAQ: ) new iPhone 16 in China as its availability on third-party platforms in the country signaled some weakness in end-user demand.

Jefferies said that while the new 16 and 16 pro models appeared “out of stock” on Apple’s China website, third-party platforms such as Tmall and PDD appeared to still have stocks of the new models available, which would could foretell a fool for the request.

The brokerage noted that delivery time for both pro models on Apple’s China website has not increased since pre-orders began, while delivery time on Tmall has decreased. Also, PDD still had both pro models available for delivery before September 30th.

The brokerage conducted a second check of iPhone 16 pre-order delivery times in six major markets – China, Hong Kong, the US, the UK and Germany. Its first check – conducted on September 15 – showed weak demand in the first two days after the iPhone became available.

iPhone pro demand is improving outside of China

Jefferies noted that demand for professional models outside of China is improving outside of China. There have now been waiting times for the 16 pro, compared to earlier signs that the model was available for delivery in two to three weeks.

Similar trends were seen in the UK and Germany, while waiting times in Japan remained stable.

“Average US delivery time for 16 pro max remained at 3-4 weeks, while at this time last year it extended to 5-6 weeks,” Jefferies said in a note.

The iPhone 16 line is Apple’s first foray into incorporating generative artificial intelligence into its devices, though the tech giant has signaled a staggered rollout of its AI features over the coming months.

The company is counting on AI features to fuel a resurgence in iPhone sales, which have lagged for more than a year. China, in particular, has been a major point of contention for sales amid increased competition in the country.