Tomorrow is glowtime for the iPhone 16 lineup at Apple Fifth Avenue! pic.twitter.com/5Sw0v5h8oC
— Tim Cook (@tim_cook) September 20, 2024
Apple launched its new iPhone 16 and iPhone 16 Pro on September 20 without the anticipated AI software, Apple Intelligence. This feature was expected to drive a consumer rush, but many iPhone users upgrading to the latest model seem unfazed by its absence. Eager customers lined up outside Apple stores from San Francisco to New York on Friday.
Power On: The iPhone 16 has tantalizing camera improvements, but the device is emblematic of Apple’s slower pace of hardware innovation. https://t.co/VjE3JHxtoO
— Mark Gurman (@markgurman) September 22, 2024
They were prepared to upgrade their devices, even though Apple Intelligence, which includes an image generator and AI-generated emojis, was not included out of the box. Instead, it is scheduled for release through several software updates starting in October. “Excited isn’t the right word.
I think I’m more intrigued,” said Ron Witt, a San Francisco resident. For Witt and many others, the main draw for upgrading was the improved camera features. “It’s always the camera for me,” Witt added.
In line at an Apple Store for the iPhone 16 right now? Reply with photos of the lines/opening here.
— Mark Gurman (@markgurman) September 19, 2024
Saul Campos, a customer in New York, said he buys a new iPhone every year largely due to the enhanced camera capabilities. “For the most part, I’m in it for the cameras because I take a lot of pictures, and they upgrade them every year,” Campos stated. He expressed excitement over the new Camera Control button that offers advanced features such as zooming in, adjusting the focus, and capturing photos or videos.
Apple fans embrace new camera features
Despite the enthusiasm at Apple stores, analysts noted a dip in first-weekend preorder sales compared to previous years. Apple supply chain expert Ming-Chi Kuo reported a 12.7% decrease in first-weekend preorder sales year-over-year compared to the iPhone 15 series, citing the absence of Apple Intelligence at launch as a possible reason.
Intense competition in the Chinese market is also contributing to the reduced demand. A report from BofA Global Research found shorter global shipping times for the iPhone 16 models compared to the iPhone 15, suggesting lower demand. For instance, the iPhone 16 had an average global shipping time of 7 days compared to 9 days for the iPhone 15.
The 16 Pro Max had an 11-day shipping time versus 19 days for the 15 Pro Max. Gil Luria, an Apple analyst for D.A. Davidson, told Reuters that early preorder data should not be over-analyzed. He suggested that as the AI features are rolled out gradually, the upgrade cycle will likely materialize over the next 12-18 months.
A survey by Consumer Intelligence Research Partners showed that 44% of respondents were upgrading because they felt their phone was “obsolete,” whereas only 18% were doing so for the new features. Reflecting on his experience with the first iPhone launch, Witt noted that the excitement today is more subdued. “It’s much more tame now,” he said, compared to the frenzy when the first iPhone was released.
Apple has yet to comment on the first-weekend sales figures or to respond to media inquiries on the topic. The company hopes to capture interest through incremental software updates and continued improvements in other hardware features, maintaining customer loyalty despite the initial lack of Apple Intelligence in new devices.
