Apple’s iPhone 16 is in stores now — but it’s missing a key selling point

Apple’s (AAPL) latest lineup of iPhones hit stores on Friday, but it’s notably missing one of its key selling points that the tech giant is hoping will convince users to upgrade their older models.

The iPhone 16, which is now stocked on Apple store shelves in some 60 countries, will come equipped with iOS 18, making it the company’s first artificial intelligence-capable iPhone. But its suite of AI features, which it has dubbed Apple Intelligence, will only become available as a software update next month.

Pre-order demand for the smartphones has already appeared weaker than expected.

In the first weekend since its debut, Apple sold about 37 million iPhone 16 smartphones — down almost 13% from iPhone 15 first-weekend sales a year ago, Apple analyst Ming-Chi Kuo said Monday. Pre-orders were dragged down by lower interest in the Pro models, largely because of the staggered release of Apple Intelligence, Kuo said.

“One of the key factors for the lower-than-expected demand for the iPhone 16 Pro series is that the major selling point, Apple Intelligence, is not available at launch alongside the iPhone 16 release,” he said.

Apple Intelligence will only be available on iPhone 15 Pro models or higher, a fact that analysts have said would drive an upgrade “super cycle,” and mark a new era of growth for the tech giant.

T-Mobile (TMUS) chief Mike Sievert has pushed back against claims of weak demand for the newest slate of iPhones, calling them “nonsense” in an interview with CNBC on Thursday. He said sales of the iPhone 16 were “‘not only good, but better than last year.”

“People are buying Pros, they’re buying Maxes, so they’re buying up the food chain, and they’re buying at a greater rate than last year,” Sievert said.

An analysis of pre-orders by Jefferies (JEF) released Wednesday found that demand for the new iPhone lineup is slowly beginning to improve in the U.S., with delivery times for the iPhone 16 Pro reaching two to three weeks in seven major cities analyzed by the investment bank. But that’s still below last year’s levels.

Recent research into the reasons why people upgrade their smartphones found that a just 18% of consumers buy a new iPhone because of new features. A majority only opt to upgrade their smartphones once they become obsolete, or are stolen or damaged.

It’s not just iPhones coming on to the scene Friday. Other products making their debut on store shelves worldwide include the Apple Watch Series 10, Apple Watch Ultra 2, and new AirPods models.

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