On Monday, Barclays reiterated its underweight rating on Apple Inc. (NASDAQ:AAPL) shares, maintaining a price target of $186.00. The firm noted a muted demand for the iPhone 16 across both pro and base models, evidenced by shorter lead times compared to the previous year and channel checks that indicate lower demand during the first week of pre-orders.
The analyst from Barclays observed that global iPhone availability tracking suggests softer demand for the iPhone 16, particularly among the pro models. Compared to last year, the wait times for the new models across major geographies were significantly shorter. In the United States, the iPhone 16 Pro Max had a wait time of just 26 days, compared to 41 days for the iPhone 15 Pro Max. Similarly, the iPhone 16 Pro's wait time was 18 days, down from 25 days the previous year.
Barclays also reported that supply chain contacts mentioned a year-over-year decline in global units by roughly mid-teens percentage for the first week of pre-orders. This trend was not limited to the U.S., as China also saw reduced wait times for the iPhone 16 Pro Max and base models compared to last year.
The report further mentioned that pre-order data indicates a softer start to the iPhone 16 cycle, with potential negative impacts from weaker consumer spending, macroeconomic pressures, and increased competition. The delayed rollout of Apple Intelligence in China and parts of Europe until the calendar year 2025 could also temper early excitement for the new iPhone model.
Despite the earlier launch of the iPhone 16 adding two extra days of sell-through in the September quarter, Barclays believes that September-quarter iPhone unit sales are on track for 51 million, assuming channel fill is in line with or better than last year. However, the firm cautions that December-quarter builds might be at risk if the current trend of lagging sell-through persists, particularly due to the staggered rollout of Apple Intelligence, limited adoption of AI outside the U.S., and a lack of hardware differentiation.
In other recent news, Apple Inc. continues to draw attention with its iPhone 16 and 16 Pro lineup. Evercore ISI maintained its Outperform rating with a $250 target for the tech giant, noting an increase in delivery times for the Pro models in certain regions.
Morgan Stanley also held its Overweight rating and $273 price target, despite a mixed trend in lead times. CFRA kept its Buy rating on Apple shares (NASDAQ:AAPL), projecting mid-to-high single-digit percentage growth for the iPhone 16 and subsequent iPhone 17 cycle.
In the face of supply chain issues, Huawei Technologies launched the Mate XT, a high-end smartphone with a tri-fold design. Despite receiving 6.5 million pre-orders, analysts warn that production yield issues might limit the initial production to 500,000 units. The European Commission initiated action against Apple to ensure compliance with the Digital Markets Act, focusing on iOS and iPadOS systems' interoperability with smartwatches, headphones, and other internet-connected devices.
Google's parent company, Alphabet (NASDAQ:GOOGL) Inc., is seeking dismissal of a $9.3 billion antitrust lawsuit in the UK, which accuses Google of abusing its dominance in the online search market. The lawsuit alleges that Google's control of the market allows it to inflate the cost of search advertising services, a cost ultimately borne by consumers.
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