Apple’s AI delay wipes out $96 billion in market value

The news: Apple’s stock took a tumble Monday, falling 3% and wiping out $96 billion in market value. The company had weaker-than-expected demand for the iPhone 16 that it announced last week. 

The new iPhones, which begin shipping Friday, won’t initially have the highly touted AI functionality, but it’s promised in a future software update. Some of its Apple Intelligence generative AI (genAI) features aren’t expected until 2025.

Preorders are down: TF International Securities analyst Ming-Chi Kuo, who tracks Apple’s supply chain, said the iPhone 16 received 37 million preorders in its first weekend, 13% lower than last year’s iPhone preorders, per Business Insider.