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iPhone 16 sales still struggling despite the promise of Apple Intelligence

A new survey reports that iPhone 16 lead times are the lowest in years, which in turn could mean lower demand for the fresh smartphones.

Custom image for iPhone 16 sales struggle article with the iPhone 16 on the left and the Apple logo on the right

The first iPhone 16 series phones arrived with customers a week ago today, but it looks like fewer have shipped than we were expecting. A new survey posits that this could be the lowest-selling iPhone launch of the last five years, with Apple’s AI features not enticing customers in the way the brand hoped they might.

The survey from Morgan Stanley (via Apple Insider) suggests that iPhone 16 lead times are at their lowest since the iPhone 12. This suggests that either Apple has produced almost exactly enough iPhone 16 devices to meet demand, or that demand in general is lower. Considering we reported on the disappointing first weekend sales earlier this month, the latter may be true, even if the iPhone 16 Pro, possibly the best gaming iPhone to date, has already shifted a staggering 17 million units. That’s a number that even the best Android phones would still struggle to compete with, but it’s not as impressive as we’ve seen from Apple before.

The lower lead times aren’t the only fascinating takeaways from Morgan Stanley’s research. The financial services company also points to new camera and battery upgrades as the main selling points attracting new iPhone 16 users, rather than the promise of AI features like Genmoji and ChatGPT-enhanced Siri. Again, this doesn’t come as a shock considering that the first Apple Intelligence features still aren’t available, but it might make Apple think again about the emphasis on AI in its ongoing marketing campaigns.

It’s worth saying that while the first month of iPhone 16 sales aren’t mind-blowing, there’s still plenty of time for things to pick up. We’re anticipating more interest in Apple’s latest smartphone after the arrival of iOS 18.1 and the first few Apple Intelligence features next month, and the holidays always provide a sales bumper as parents rush to get their kids the latest tech. With that in mind, we’ll have to wait a while to get a full picture of how the iPhone 16 is faring compared to its predecessors.

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Another potential contributing factor to the iPhone 16’s middling reception is that rumors of a new iPhone SE model in Spring 2025 are circulating, suggesting that the Apple competition for the best mid-range phones market could itself come with Apple Intelligence. Given that the SE 4 is likely to be more affordable than even the cheapest iPhone 16, some consumers could be waiting for confirmation from Apple before deciding which phone to go with. Either way, Apple will be hoping that next month’s iOS 18.1 update can provide an uptick in sales and help the California tech giant retain its market-leading position moving into 2025.