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The launch of the iPhone 15 series hasn’t been what Apple expected, as despite being one of the most significant upgrades in recent times, these phones have faced several issues, including overheating problems (now fixed) and unexplained Wi-Fi drops. Now, a new report from J.P. Morgan analyst Samik Chatterjee suggests that the initial high demand for the iPhone 15 series is waning as wait times return to normal levels.
According to Chatterjee’s research note to his clients, the lead times for the iPhone 15 series have fallen below the figures recorded during the same period for the previous iPhone 14 line. And although this might partly result from increased production by Apple, it could also signal weaker demand for the iPhone 15 series.
“Average lead times are now tracking to one day for the iPhone 15, 15 days for the 15 Pro, and 25 days for the 15 Pro Max, all of which are in line or below the lead times for the respective models in the 14 series during Week 6 a year ago,” said Chatterjee.
Discounts on the iPhone 15 series already
This report comes at a similar time to when Reuters reported that Chinese retailers, including Pinduoduo from PDD Holdings and Taobao from Alibaba, are offering significant discounts of up to 900 yuan ($123) on the latest iPhone 15 series, thus suggesting that demand for the new series has been lackluster. This was also evident when Counterpoint Research reported a 4.5% drop in sales during the 17 days following the iPhone 15’s launch in China.
However, it is important to note that these aggressive discounts may also result from intense competition between Chinese retailers as they strive to attract budget-conscious buyers amidst a slowing economy.
Not a big hurdle for Apple
Despite the performance of the 15 series, Chatterjee maintains his bullish rating on the company, suggesting that fund managers should consider allocating a larger portion of their portfolios to Apple. To put this into perspective, Apple currently accounts for 7% of the S&P 500 index, and according to Chatterjee, fund managers aiming to outperform the S&P 500 should logically have a higher stake in Apple.