Preorder Performance is down
The new iPhone 16 series, featuring a novel shutter button and an unclear Apple Intelligence (AI) strategy, has failed to generate the same level of enthusiasm as its predecessor. Preorder numbers for the iPhone 16 are notably lower than those for the iPhone 15, both in the EU and globally.
Customer Sentiment
iPhone 15 Pro users, particularly in Europe, show less excitement about the iPhone 16 Pro. This tepid response is largely attributed to the lack of a clear AI strategy from Apple in the old continent.
Regional Availability of Apple Intelligence
- USA: Apple Intelligence will be available next month (October 2024)
- Australia, Canada, New Zealand, South Africa, and the UK: Launch scheduled for December 2024
- Additional language support (Chinese, French, Japanese, and Spanish): Coming next year 2025
- European Union: AI Launch date remains uncertain (key languages such as German are missing)
This staggered release means customers in non-English speaking countries, such as those using Spanish or French, have less incentive to rush their purchases. DACH (Germany, Austria, Switzerland) is a 100 million people market that is left over. Ironically US’s key sales argument as per the company’s website is the iPhone is built for Apple Intelligence, personal, private, and powerful.
Hardware and Software Innovations
The iPhone 16 series offers only modest hardware improvements:
- Slightly enhanced SoC performance from A18 Pro and A18 chips
- Introduction of an innovative shutter button
- Advancements in computational photography thanks to AI
Future Prospects
The rumored thin design of the iPhone 17, expected in September 2025, may reignite customer interest. However, it’s worth noting that the iconic thin design moment, as seen with the Motorola Razr, occurred nearly two decades ago.
Preorder and Shipping Analysis
Ming-Chi Kuo has shared compelling data based on preorders and shipping times and we investigated on our own:
- Austria: Delivery expected in the first week of October (2 to 10)
- Germany and UK: 2-3 weeks delivery time
- USA: 7-10 business days shipping time
These figures are based on the popular iPhone 16 Pro 256GB version. Interestingly, the 1TB version is available at launch on September 20 in mentioned countries.
Apple’s Product Strategy Challenges
Apple management faces a significant challenge: their previous generation products were well-received, making it difficult to significantly improve upon them. This issue isn’t limited to iPhones; a similar pattern has been observed with their notebook lineup. While they successfully sold many M1-based notebooks, subsequent iterations have offered only incremental improvements.
Conclusion
The lukewarm reception of the iPhone 16 series highlights the challenges Apple faces in maintaining enthusiasm for yearly product updates. With modest hardware improvements and a staggered rollout of AI features, Apple may need to reconsider its strategy to reignite customer excitement in future releases. Expect revenue to go down in the busiest quarter.
Last edited 4 minutes ago
