Apple’s stock faced pressure, falling 2.9% and leading declines in the Dow Jones Industrial Average, as a Barclays analyst raised concerns about weaker-than-expected demand for the iPhone 16.
The report from Tim Long of Barclays highlighted shorter wait times for the new iPhone models compared to previous years, signaling potentially softer consumer interest, especially in key markets like the US and China.
While some analysts attribute the shorter wait times to better supply management this year, Long noted that reduced lead times could still point to weaker demand. He also expressed concern about possible order cuts from one of Apple’s Taiwanese suppliers for the December quarter, which, if confirmed, would be one of the earliest production cuts in recent history.
Long, who holds an underweight rating on Apple’s stock, warned that the December quarter is at increasing risk if iPhone sales fail to meet expectations. He cited limited adoption of Apple’s artificial intelligence features and a lack of significant hardware differentiation as potential factors contributing to softer demand.
Despite the bearish outlook from Barclays, other analysts remain optimistic. JPMorgan’s Samik Chatterjee noted that demand for the iPhone 16 Pro models appears to be stabilizing, with lead times holding steady in the third week of sales, an indication that interest in the high-end versions of the device could pick up as new AI features roll out.
Apple has not commented on the potential order cuts. As the iPhone remains a critical revenue driver for the company, accounting for roughly half of its annual income.
