Don’t worry about Apple or the iPhone 16. Wall Street analysts have been debating whether demand for the company’s new artificial intelligence-ready iPhone models is off to a slow start ahead of Friday’s rollout to stores. Jim Cramer said Thursday, however, there should be no debate after what T-Mobile CEO Mike Sievert told him in a Wednesday interview for “Mad Money.” The leader of one of the largest U.S. carriers said there have been more iPhone 16 sales in the first week of preordering compared to the same period last year for the iPhone 15. The iPhone 16 was announced on Sept. 9 , when the company held this year’s fall new product event. “People are buying Pros. They’re buying Maxes. So, they’re buying up the food chain, and they’re buying at a greater rate,” Sievert said, dismissing any softer iPhone 16 sales data as “nonsense.” This is important because mobile carriers — including Verizon and AT & T — are the single-largest iPhone sales channel for Apple. These firms account for roughly 66% of iPhone shipments in the U.S., and about 40% worldwide, according to Morgan Stanley. That’s why Jim trusts the T-Mobile CEO’s word more than initial analyst channel checks on sales. “Sievert stands for what the numbers really are,” Jim stressed during Thursday’s Morning Meeting . After listening to Sievert — who also spoke at Wednesday’s T-Mobile analyst day — Morgan Stanley came to the same conclusion Jim did. In a Wednesday note, the Morgan Stanley analysts said the iPhone 16 will usher in a “multi-year upgrade cycle” for Apple because of its generative artificial intelligence capabilities. They said it’s a “when, not an if” situation. AAPL YTD mountain Apple YTD This is a big pushback on Wall Street calls from earlier this week about softer demand for the iPhone 16 base and Pro models that knocked down Apple stock. Analysts from JPMorgan, Barclays and Bank of America said that lower shipping times compared to last year may indicate softer demand for the newest iPhone Pro models. TF Securities’ Ming-Chi Kuo, a noted Apple analyst, said that first-weekend sales for the iPhone 16 were down 12% year over year compared to the iPhone 15. Kuo said demand was lagging because a key selling point, the Apple Intelligence AI suite, won’t be fully available until after the release. Sievert counted that notion, telling Jim on “Mad Money” that delays in the AI tools could drive more interest in the iPhone 16. “I have a feeling the cycle will be lengthened a little. The AI features don’t come out for a little while. That word-of-mouth of seeing Apple Intelligence on your phone and telling other people is still in front of us and will take a few weeks.” Shares of Apple were on a three-session winning streak, including Thursday’s 3.8% surge. Year to date, Apple has gained 19% — roughly on par with the S & P 500 index’s 20% increase in 2024. (Jim Cramer’s Charitable Trust is long AAPL. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Apple CEO Tim Cook inspects the new iPhone 16 during an Apple special event at Apple headquarters on September 09, 2024 in Cupertino, California.Â
Justin Sullivan | Getty Images
Don’t worry about Apple or the iPhone 16.Â
