Apple Stock Under Pressure: Analysts Optimistic Despite Sluggish iPhone 16 Demand

Apple shares are trading at their lowest level in a month, yet analysts still see potential in the upcoming 'super cycle' of iPhone upgrades, driven by the adoption of Artificial Intelligence (AI). Since the launch of the iPhone 16 on September 10, Apple shares have been under pressure due to the slow introduction of AI features in the new flagship device, raising concerns about weaker demand. Previous data also indicates that demand for the new model has been subdued so far. Pre-order times are relatively short, suggesting a balance between Apple's supply plans and consumer demand. Taiwanese Apple analyst Ming-Chi Kuo reported that Apple sold an estimated 37 million new iPhone 16 units in its first sales weekend – a decline of about 12.7 percent compared to the iPhone 15 launch last year. Demand for the new iPhone series could be crucial for investments in AI technology, as Apple is in an excellent position to bring new technologies to its 1.4 billion users. Morgan Stanley analyst Erik Woodring remains optimistic, emphasizing that pre-order times do not have the predictive power that investors sometimes attribute to them. He anticipates a significant increase in demand in the near future: 'More important is how iPhone 16 lead times will develop over the next 10 days.' Woodring reaffirmed his 'Buy' rating and the price target of $273, representing a potential 26 percent increase over the next 12 months. CFRA Senior Equity Analyst Angelo Zino also considers early supply times to be of little significance and expects mid to high single-digit growth in iPhone 16 and iPhone 17 sales. However, he does not foresee an imminent 'super cycle' but rather an evolutionary development. Apple will announce its fourth-quarter financial results on October 31. Initial estimates anticipate revenue of $94.4 billion and earnings of around $1.60 per share. In pre-market trading sessions, Apple stock was down 0.38 percent at $215.97.