Apple’s stock fell on Monday after reports indicated that demand for the iPhone 16 is weaker than expected. Analysts from Citigroup and Jefferies observed that pre-order delivery times for the new model are shorter than for last year’s iPhone 15, reflecting softer consumer interest. The iPhone 16, priced between $799 and $1,199, was hoped to boost sales, but a delay in its AI-powered features and intensifying competition in China may have contributed to the decline in demand. Apple sold an estimated 37 million units during its opening weekend, down 12.7% from last year.

Despite a tilt towards higher-end models such as the iPhone 16 Pro Max, the overall sales decline has raised concerns, especially as Apple relies heavily on iPhone sales, which account for half of its annual revenue. The slow demand could undermine Apple’s AI investment strategy, which it aims to deploy across its massive 1.4 billion user base. The market is closely watching how the new iPhone performs in the coming weeks.