12:44 PM EDT, 09/18/2024 (MT Newswires) -- Apple ( AAPL ) is experiencing softer year-over-year demand for its latest iPhone in the days following pre-order kick-off, particularly among the high-end variants, UBS Securities said in a note emailed Wednesday.

Average wait time for the iPhone 16 Pro Max models is roughly two weeks shorter across the US, China, Germany, Great Britain, France and Japan, according to data from UBS. For the Pro model, wait times are on average eight days shorter than last year's generation.

Wait times in the US for the Pro Max version are about 26 days compared with 40 days last year, even as Apple's ( AAPL ) new artificial intelligence technology is set to release on the lineup later this year, according to UBS analysts David Vogt and Andrew Spinola. In China, where macroeconomic and competitive forces are at play, wait times are roughly half of 2023 levels.

"We believe (year over year) comparisons are more meaningful in determining underlying demand, where wait times for the iPhone 16 lineup have been uninspiring since preorders began last Friday," they said.

The brokerage reiterated a neutral rating and a $236 price target on the stock. Its fiscal fourth-quarter earnings per share target of $1.58 is below the consensus' $1.60 view while its fiscal 2024 EPS estimate is a penny below the Street's $6.69 projection. Shares of Apple ( AAPL ) were up 1.8% in midday trade.

UBS estimates iPhone 16 builds in the second half of 2024 will be up 10% year over year at 86 million units compared with 78 million iPhone 15 units the year earlier. However, weaker initial wait-time data put downside risk on the numbers, Vogt and Spinola said.

With the iPhone Pro and Pro Max making up about 65% of iPhone builds in the second half of the year, the weaker luxury demand could limit average selling price growth, according to the research report.

For the base and Plus variants, wait times are virtually in line with last year, according to UBS. The brokerage estimates that builds of the base and Plus variants account for 35% of initial build rates.

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