Slower iPhone 16 Pro demand starting to correct, says JPMorgan

JPMorgan analyst Samik Chatterjee says that in week three of the firm’s Apple product availability tracker, delivery lead times are showing trends which will explain the weaker lead times for the Pro models in the initial weeks “as only an aberration” led by a combination of better supply mix as well as delay in pick up in momentum from higher end consumers awaiting the release of Apple Intelligence. Lead times in aggregate have moderated as expected following the peak in week two, but Pro model lead times remained steady, contrary to a moderation being typical in prior years for week three, the analyst tells investors in a research note. JPMorgan believes the lead times suggesting slower initial demand for the new iPhone Pro models are starting to correct. It keeps an Overweight rating on Apple shares.