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Ahead of the official release of Apple Inc.'s iPhone 16, T-Mobile US Inc. CEO Mike Sievert has shared promising sales figures for the new model, indicating a strong start despite earlier concerns about demand.
What Happened: In an interview with CNBC's Jim Cramer on Wednesday, Sievert revealed that the iPhone 16 is outperforming last year’s model in sales.
“The first week was better than last year,” Sievert noted. He emphasized that customers are purchasing higher-end models, contributing more to Apple's top and bottom lines.
"People are buying Pros, they're buying Maxs, so they're buying up the food chain, and they're buying at a greater rate than last year," Sievert said, according to the report.
Subscribe to the Benzinga Tech Trends newsletter to get all the latest tech developments delivered to your inbox.
Although the iPhone 16 will hit stores on Friday, its much-anticipated AI features will not be available until next month. Some analysts had predicted lower demand due to this delay, increasing pressure on the Apple stock.
However, Sievert stated that demand remains strong and the delay might extend the buying cycle. He believes it will take longer for customers to share their experiences due to the postponed features.
Why It Matters: The positive sales report from T-Mobile comes amid concerns about the iPhone 16’s market performance.
Top analyst Ming-Chi Kuo reported that pre-orders for the iPhone 16 Pro and Pro Max were lower than expected during the first weekend, with around 37 million units sold. Kuo’s analysis, based on supply chain surveys and pre-order data, suggested weaker demand for the Pro models, contrary to Sievert's comments.
Further, early pre-order data indicated that demand for the iPhone 16 might be lower than anticipated due to insufficient reasons for existing iPhone owners to upgrade.
Check out more of Benzinga's Consumer Tech coverage by following this link.
Read Next:
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Apple
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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