iPhone 16 sold out quickly on its first day, but the hype faded in subsequent days, making it easier for consumers to purchase. Renowned Apple analyst Ming-Chi Kuo was also disappointed, estimating a 12.7% drop in iPhone 16 sales during the first week, which is quite detrimental to Apple.

When iPhone 16 went on sale on Apple's official website, media reporters also logged in to purchase, but within just 10 minutes, the phones were sold out. Soon, Apple's Chinese official website also crashed, showcasing the fervor of the rush to buy. It's astonishing that despite numerous criticisms, iPhone 16 remained popular among consumers.

However, after the initial rush by avid Apple fans, consumer enthusiasm for iPhone 16 waned, and it became much easier to purchase. This is undoubtedly detrimental to iPhone 16's sales.

The reason for this outcome lies in the fact that iPhone 16 sold in China does not support Apple's AI technology, Apple Intelligence, disappointing many domestic consumers. As a result, many Chinese consumers opted to wait and see, and since China is the largest iPhone market, this slowdown in purchases is cause for concern regarding iPhone 16 sales.

Based on order data from the supply chain, Ming-Chi Kuo also observed that after a few days of iPhone 16's launch, supply chain orders became less nervous , leading him to estimate a 12.7% drop in iPhone 16 sales during the first week. Ming-Chi Kuo's previous predictions for iPhones have been relatively accurate, so his pessimism towards iPhone 16 indicates that actual sales are indeed not ideal.

This situation may stem from the fact that the enthusiasm for iPhone remains confined to a dedicated group of Apple fans, with no significant influx of new supporters. Moreover, the enthusiasm of these fans has shifted from the iPhone 16 Pro to the much cheaper iPhone 16.

Apple's iPhone 16 lineup this year features the A18 processor across all models, significantly reducing the differences between the standard and Pro versions. The standard version starts at 5,999 yuan, while the iPhone 16 Pro starts at 7,999 yuan, a difference of 2,000 yuan. With reduced differentiation, the most passionate fans have shifted their preference from the iPhone 16 Pro to the iPhone 16.

The iPhone 14/15 distinguished between the standard and Pro versions, with only the Pro version featuring the latest processor while the standard version used the previous generation. This significant performance gap prompted consumers to opt for the Pro version, making it the best-selling model in the previous two generations. In contrast, the standard version used to be the top-selling model. Now, it seems that the iPhone 16 standard version may once again outperform the Pro version in sales.

The weaker-than-expected sales of iPhone 16 bode well for upcoming Qualcomm Snapdragon 8G4 smartphones from domestic manufacturers. Perhaps many consumers will opt for these new domestic flagship models. However, their prices may rise, as Qualcomm is reportedly significantly increasing the price of Snapdragon 8G4 chips, with an estimated 20% increase to 1,700 yuan, prompting domestic manufacturers to raise prices substantially.

If iPhone 16 sales continue to underperform, Apple may once again resort to price cuts to stimulate demand. By continually lowering prices until consumers are willing to buy, Apple can alleviate pressure on itself. Last year's iPhone 15 followed this strategy, with successive price reductions of 1,500 yuan and then 2,350 yuan, each time driving a new wave of purchases.

Apple dares to cut iPhone prices because its profitability no longer relies solely on hardware sales but also on services. Replacing an iPhone 16 battery costs 969 yuan, and other accessories have also seen price increases. Apple also charges for App Store downloads and in-app purchases, with a commission taken on each transaction. Services have become Apple's primary source of profit. As long as iPhones continue to attract customers, Apple's services business will thrive, providing the confidence to continually lower prices.