KeyBanc Capital Markets’ carrier survey shows Apple’s (NASDAQ:AAPL) iPhone 16 sell-through in October exceeded forecasts. The poll revealed an 8% annual YOY rise in iPhone sales during the month.
In a client report, KeyBanc analysts John Vinh and Brandon Nispel pointed out that sales of iPhone 16 exhibited a meager month-over-month increase. Driven by enthusiasm for the enhanced camera functionality, demand for the iPhone 16 Pro Max was highest, followed by the Pro model. Sales generally followed seasonal patterns or somewhat surpassed store projections.
The study revealed, meanwhile, little user interest in Apple Intelligence, the company’s AI product. “Apple AI stayed a non-factor; few customers asked about the new features,” Vinh said. KeyBanc expressed worries about future growth even with the high sales by keeping its Underweight rating on Apple stock with a $200 price target. “We believe investors are prematurely dismissing the iPhone 16 upgrade cycle; consensus expectations for significant growth inflections in FY25 and FY26 remain overly optimistic,” Nispel added.
Keybanc also cautioned of possible cannibalization from the forthcoming iPhone SE, anticipated to be released in early 2025 at an estimated price of $499, which could deflect demand from the iPhone 16.
This article first appeared on GuruFocus.
