Barclays sees weak demand for iPhone 16 by Investing.com

Barclays analysts said in a note on Monday that they see weak demand for Apple’s (NASDAQ: ) iPhone 16 based on shorter delivery times and channel checks in the first week of pre-orders.

According to Barclays, early signs are “not encouraging” as both the Pro and base models saw a weaker response compared to last year’s iPhone 15 launch.

The memo highlights significantly shorter wait times in key geographies, particularly for iPhone 16 Pro models.

In the US, delivery time for the iPhone 16 Pro Max in the first week was just 26 days, compared to 41 days for the iPhone 15 Pro Max. Barclays adds that, similarly, the iPhone 16 Pro had a wait of 18 days, down from 25 days last year.

In China, where demand is considered a crucial indicator for Apple, waiting time for the iPhone 16 Pro Max is said to have dropped to 18 days, down from 36 days for the iPhone 15 Pro Max.

Barclays believes the shorter delivery times and lower demand signal “weaker-than-expected demand, particularly in the US and China”, where consumer spending has eased.

In addition, global pre-order units are estimated to be down by the mid-teens year-over-year, according to the company’s supply chain contacts.

The launch of Apple Intelligence, a key feature of the iPhone 16, is delayed until 2025 for markets such as China and parts of Europe. Barclays believes the delay could dampen enthusiasm for the new model.

The bank also pointed out that the earlier iPhone launch gives Apple two more days of sales for the September quarter, but this is unlikely to offset weaker demand trends.

With these headwinds, Barclays maintains its Underweight rating and $186 price target on Apple, suggesting that demand for the iPhone 16 could continue to lag unless sales improve in the coming months.