Apple's latest iPhone 16 series is currently facing some sales challenges. According to market analysis, the initial sales performance of the iPhone 16 series was lower than expected, which put additional pressure on Korea display manufacturer LG Display (LGD). Although the iPhone 16 sold out quickly in stock at the time of its release, the demand seems to have weakened compared to the iPhone 15. Global pre-orders are down about 15% compared to the iPhone 13.
It is reported that the poor sales of the iPhone 16 series may be the result of a combination of factors such as the lack of significant product innovation, the delayed launch of Apple Intelligence features, fierce market competition, especially from Chinese brands, the decline in consumer purchase intention due to global economic uncertainty, consumer expectations waiting for the next generation of products or promotions, and supply chain issues limiting initial supply.
The iPhone 16 series includes the base model, iPhone 16 Plus, iPhone 16 Pro, and the flagship iPhone 16 Pro Max. Among them, the Pro and Pro Max models are often seen as the main sales drivers, but this time they are considered to be not as good as in the past in terms of innovation, which may affect the overall sales performance. In addition, while the iPhone 16 and iPhone 16 Plus have significant upgrades, the Pro and Pro Max models typically account for a larger percentage of shipment plans, so any reduction in sales could have an impact on overall sales.
Picture: Apple 16 sales are not good (Source: AFP)
Still, some market analysts and telecom operators say that the iPhone 16 series is not selling as badly as expected. For example, the CEO of T-Mobile said that the iPhone 16 series sold better in the first week compared to last year's model.
On the surface, SDC (Samsung Display) is more affected by iPhone sales, as SDC supplies the full range of iPhone panels, which is about twice as much as LGD. However, SDC is less affected by the supply of OLED panels, which include Samsung Electronics and several Chinese smartphone manufacturers. In contrast, LGD relies on Apple as its core customer, so it is significantly more affected.
For LGD, the success of the iPhone 16 series is crucial, as the company relies on Apple as a core customer. LGD had hoped that strong sales of the iPhone 16 would boost the company's performance, but it now seems that this hope may not materialize until the iPhone 17 in 2025. In addition, LGD faces delays in supplying panels for iPhones in 2023, and although the company addresses these supply issues in 2024, weak initial sales of the iPhone 16 could slow the pace of LGD's return to profitability.
Overall, while the initial sales of the iPhone 16 series were not as strong as expected, that doesn't necessarily mean that the entire product line will face failure. Over time, Apple may take a variety of measures, including promotions and new feature releases, to stimulate demand.
