iPhone 16 sales flat in South Africa

It appears as though early sales of Apple’s latest flagship smartphone, the iPhone 16, have been lacklustre in South Africa.

This comes despite a MyBroadband reader recently expressing frustration at stock being unavailable from the iStore, one of South Africa’s best-known Apple retailers.

At the time we visited the iStore’s online website, it had stock of several models but some were only available on backorder.

The Pro models appeared to be in the shortest supply.

MyBroadband asked iStore for details on the performance of the iPhone 16.

The retailer said it “continues to enjoy an excellent response” to the launch of the new iPhone, but did not comment on how well sales had fared compared to previous models.

South Africa’s second-biggest mobile network, MTN, said its iPhone 16 sales were comparable to those of the iPhone 15 and all its predecessors.

However, MTN said that a clear comparison could only be defined once supply had normalised across the full range.

Telkom also told MyBroadband although iPhone 16 sales were “healthy”, iPhone 15 sales were performing better due to better pricing.

“Customers are probably seeing value in opting for the previous model while stock lasts,” Telkom said.

With regards to the best-selling models, MTN said the Pro and Pro Max were still the most popular and in-demand options among its customers.

Telkom said its most popular options were the standard model, followed by the Plus and Pro variants.

The muted demand appears to be in line with global trends.

Analysis of sales data over the first weekend that Apple opened pre-orders for the iPhone 16, showed the iPhone 15 had recorded better sales.

Reputed Apple supply chain analyst Ming-Chi Kuo of TG International Securities estimated Apple sold 37 million units across the range during that period, 12% less than the iPhone 15.

Notably, South Africa seems to deviate from the global trend with regard to model preference.

Kuo’s analysis found that the Pro models, the most popular among MTN customers, had seen the biggest overall sales declines of 27% and 16%, respectively.

Considering the biggest impact has been on Apple’s more expensive models, Apple could see a dip in its iPhone sales revenue for the third quarter of 2024.

However, the company’s anticipated demand for the new model has been spot on.

Kuo subsequently provided additional insights showing that assembly orders for all four models remained in line with the company’s expectations.

The company has kept production orders for the iPhone 16 Pro and Pro Max the same, while orders of the standard iPhone 16 and 16 Plus have been reduced by around 3% to 5%.

While some analysts expected increased demand heading into the holiday season, the delay of key artificial intelligence (AI) features could impact that resurgence.

Kuo anticipated that total unit output for the fourth quarter would be 88 million to 89 million units, slightly lower than the 90 million to 91 million iPhone 15 models produced over the same period last year.

One of the biggest selling points of the latest models was “Apple Intelligence,” the company’s take on generative AI tools and integration.

However, Apple launched the smartphones without the new AI features, which are now only primed for full rollout in early 2025.

On the hardware side, the iPhone 16 also came with minor improvements to its camera system and battery.

The iPhone 15 had a more significant change — it was the first Apple smartphone to feature a USB-C port instead of Apple’s proprietary Lightning connector.

In South Africa in particular, the high prices of the iPhone 16 could also be strangling sales numbers.

The pricing of the iPhone 16 range is slightly lower than the 2023 models but remains very high compared to previous years.

The main driver behind the rising prices has been the weak rand.

Apple has left iPhone line-up pricing in its home country largely unchanged since 2020, but the dollar has strengthened against the rand in the past four years.

Where the entry-level iPhone model in South Africa cost R15,999 in 2020, the most affordable option in 2024 is R20,999, over 31% more expensive.

It also has just 128GB storage and a 60Hz display.

An entry-level price of R20,000 might be too bitter a pill to swallow for even the biggest Apple fans, considering 256GB and 120Hz have become the standard across other flagships and even some mid-range phones.