Consumers finally got their hands on Apple's iPhone 16 smartphones on Friday as the new handsets officially went on sale in stores. But Apple stock dipped on Friday.
Apple began taking preorders for the AI-enabled handsets last Friday, Sept. 13. But early sales reports were mixed.
Some analysts said preorder demand for the iPhone 16 was weaker than last year's iPhone 15 series. But others noted that shorter wait times for delivery this year were likely due to Apple making more handsets for better availability at launch.
Meanwhile, the chief executive of wireless carrier T-Mobile US said his firm is seeing more sales of iPhone 16 handsets than it did last year for the iPhone 15, especially the premium Pro versions.
However, he added that the delayed launch of artificial intelligence features might lengthen the buying cycle for the iPhone 16. The first batch of AI features will be in a software update in October.
Apple Stock Sinks After iPhone 16 Retail Launch
On the stock market today, Apple stock fell 0.3% to close at 228.20. It had been up modestly for most of the day but reversed in the final 15 minutes of trading.
In addition to the new iPhones, Apple on Friday began selling its latest smartwatches, the Apple Watch Series 10, and new wireless earbuds, AirPods 4.
Apple Chief Executive Tim Cook greeted customers Friday morning at the company's 5th Avenue retail store in New York City.
Prices start at $799 for the entry-level iPhone 16 and range up to $1,599 for the top-of-the-line iPhone 16 Pro Max with 1 terabyte of data storage.
Negative Headlines Continue
On Friday, Apple continued to face negative headlines about soft iPhone 16 demand.
Chinese e-commerce sites slashed prices on iPhone 16 models below the prices cited on Apple's website, signaling weak demand. That was according to Chinese news site Yicai Media Group and Taiwanese news service DigiTimes.
In a client note Friday, UBS analyst David Vogt said "demand remains muted" for iPhone 16 handsets based on his firm's checks across 30 geographies. He rates Apple stock as neutral with a price target of 236.
Elsewhere on Wall Street, Evercore ISI analyst Amit Daryanani said delivery lead times for iPhone 16 models remain below last year's iPhone 15 models.
"Unclear how much of an impact supply may be having on delivery times, but we think this supports the thesis of a more gradual uptick in iPhone sales as Apple Intelligence features are rolled out," Daryanani said in a client note. He rates Apple stock as outperform with a price target of 250.
Apple stock is on the IBD Tech Leaders list.
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