Jeffries analyst claims iPhone 16 sales will disappoint despite new AI features

iPhone 16 Pro comes in four stunning finishes: black titanium, natural titanium, white titanium, and desert titanium.
Apple’s stock declined on Monday after Jefferies downgraded the company to a “hold” rating. The investment firm cited concerns about disappointing iPhone 16 sales, despite the introduction of new artificial intelligence features. Analyst Edison Lee cited these concerns as the basis for the downgrade.
Reinhardt Krause for Investor’s Business Daily:
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“We like Apple Intelligence long-term, as AAPL is the only hardware-software integrated player that can leverage proprietary data to offer low-cost, personalized AI services,” Lee said in a report. “But smartphone hardware needs rework before being capable of serious AI, with likely timeline of 2026/2027. The high expectations for iPhone 16/17 are premature, in our view.”
“A lack of material new features and limited AI coverage mean high market expectations (5%-10% unit growth) are unlikely to be met,” added Lee. “Our analysis suggests weaker-than-expected initial demand. We forecast flattish volume growth for second half 2024 iPhone 16 versus iPhone15, and only 2.5% growth in life cycle volume for iPhone 16.”

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MacDailyNews Take: Lee on Monday downgraded Apple from “Buy” to “Hold” with a $213 price target which we have iCal’ed for future use.

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The post Jeffries analyst claims iPhone 16 sales will disappoint despite new AI features appeared first on MacDailyNews.