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An attendee holds two iPhones 16 as Apple holds an event at the Steve Jobs Theater on its campus in Cupertino, California, U.S. September 9, 2024. 

Manuel Orbegozo | Reuters

Apple shares slid 3.6% in Monday morning trading, after reports that demand for the new iPhone 16 is lower than expected — and down 12% year over year from the first-weekend sales of the iPhone 15 last year, TF Securities analyst Ming-Chi Kuo wrote in a note.

“The key factor is the lower-than-expected demand for the iPhone 16 Pro series,” Kuo wrote after compiling data from Apple’s websites on each iPhone 16 model’s pre-order sales, average delivery times and shipments before pre-order.

Kuo added that one of the “key factors” of lower demand is that the “major selling point, Apple Intelligence, is not available at launch alongside the iPhone 16 release. Additionally, intense competition in the Chinese market continues to impact iPhone demand.”

Last Monday, Apple unveiled new versions of the iPhone, AirPods and Apple Watch at an event at its headquarters in Cupertino, California. Pre-orders for the new iPhones began Friday and launch on Sept. 20, but the first Apple Intelligence features for iPhone 16 won’t launch until next month, in a beta version.

Analysts at Barclays, JPMorgan and Bank of America also wrote in investor notes that shipping times could translate to lighter demand for the newest iPhone Pro models, compared to last year.

“Based on our conversations with distributors and analysis of pre-order figures on major Chinese e-commerce sites, total pre-order units were down Y/Y within the first couple of days, with a lower pro model mix,” Barclays analysts wrote in a note. “We heard that pro model units were down double digits on a Y/Y basis, while base and plus models grew Y/Y.”

The Barclays analysts added that the rollout of Apple Intelligence in the Chinese language “is not until CY2025, which may dampen early enthusiasm for IP16. Weak macro and competition continue to weigh on iPhone sales in China.” They also wrote that Apple had to rely on significant discounts to help China sales for the iPhone 15.

When tracking key markets’ delivery lead times as a demand indicator, the JPMorgan analysts wrote that “early lead-times are indicating demand on the iPhone 16 base models in-line to the iPhone 15 series during Week 1 (e.g., Pre-Order Week), while early demand indicators for Pro models are starting off modestly softer relative to the iPhone 15 series.”

BofA analysts wrote that after tracking iPhone ship dates on Apple’s own website and various carrier websites, ship time “for the iPhone 16 Pro and Pro Max models are extended, but somewhat less (on average) compared to last year at this point in the pre-order cycle.”

They added that “though the extension of ship dates can be reflective of iPhone demand, other factors such as supply, inventory, allocation and pricing could be impacting the ship dates.” The analysts also wrote that Apple reduced iPhone 16 prices in Australia and India.

The iPhone 16 Pro and the iPhone 16 Pro Max are Apple’s more premium phones that have nicer screens and cameras than the regular models, starting at $999 and $1,199, respectively.

The Pro models have the “thinnest borders on any Apple product,” Apple said at its event last week, calling them “by far our best iPhone displays ever.” The titanium is nearly half the weight of stainless steel and is “more scratch resistant than other forms of titanium others have used.”

The company also said during the event the new iPhone 16 Pro Max has “the best iPhone battery life ever” but did not offer additional details.

— CNBC’s Michael Bloom contributed reporting.

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Tripadvisor stock surges 17% as Starboard Value builds sizable stake in online travel company

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Tripadvisor stock surges 17% as Starboard Value builds sizable stake in online travel company

The Tripadvisor logo is displayed on a tablet.

Mateusz Slodkowski | Sopa Images | Lightrocket | Getty Images

Tripadvisor stock jumped 17% Thursday after Starboard Value revealed a more than 9% stake in the online travel company, according to a securities filing.

The position was valued at about $160 million as of Wednesday’s close.

Tripadvisor shares have been flat since the start of the year after plummeting more than 30% in 2024. Last year, the travel review and booking company said it created a special committee to explore potential options.

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Starboard Value has gained a reputation for pushing for changes such as new CEOs and cost cuts by acquiring significant shares in companies.

Most recently, the firm settled a proxy fight with Autodesk, where it gained two board seats. It has previously pushed for changes at Tinder parent Match Group, pharmaceutical giant Pfizer and Salesforce.

The Wall Street Journal was the first to report the news late Wednesday.

Tripadvisor did not immediately respond to CNBC’s request for comment. Starboard declined to comment on the news.

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Apple’s China iPhone sales grows for the first time in two years

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Apple's China iPhone sales grows for the first time in two years

People stand in front of an Apple store in Beijing, China, on April 9, 2025.

Tingshu Wang | Reuters

Apple iPhone sales in China rose in the second quarter of the year for the first time in two years, Counterpoint Research said, as the tech giant looks to turnaround its business in one of its most critical markets.

Sales of iPhones in China jumped 8% year-on-year in the three months to the end of June, according to Counterpoint Research. It’s the first time Apple has recorded growth in China since the second quarter of 2023.

Apple’s performance was boosted by promotions in May as Chinese e-commerce firms discounted Apple’s iPhone 16 models, its latest devices, Counterpoint said. The tech giant also increased trade-in prices for some iPhone.

“Apple’s adjustment of iPhone prices in May was well timed and well received, coming a week ahead of the 618 shopping festival,” Ethan Qi, associate director at Counterpoint said in a press release. The 618 shopping festival happens in China every June and e-commerce retailers offer heavy discounts.

Apple’s return to growth in China will be welcomed by investors who have seen the company’s stock fall around 15% this year as it faces a number of headwinds.

U.S. President Donald Trump has threatened Apple with tariffs and urged CEO Tim Cook to manufacture iPhones in America, a move experts have said would be near-impossible. China has also been a headache for Apple since Huawei, whose smartphone business was crippled by U.S. sanctions, made a comeback in late 2023 with the release of a new phone containing a more advanced chip that many had thought would be difficult for China to produce.

Since then, Huawei has aggressively launched devices in China and has even begun dipping its toe back into international markets. The Chinese tech giant has found success eating away at some of Apple’s market share in China.

Huawei’s sales rose 12% year-on-year in the second-quarter, according to Counterpoint. The firm was the biggest player in China by market share in the second quarter, followed by Vivo and then Apple in third place.

“Huawei is still riding high on core user loyalty as they replace their old phones for new Huawei releases,” Counterpoint Senior Analyst Ivan Lam said.

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Like Google, China’s biggest search player Baidu is beefing up its product with AI to fight rivals

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Like Google, China's biggest search player Baidu is beefing up its product with AI to fight rivals

Pictured here is the Ernie bot mobile interface, with the Baidu search engine home page in the background.

Future Publishing | Future Publishing | Getty Images

Chinese tech giant Baidu has bolstered its core search platform with artificial intelligence in the biggest overhaul of the product in 10 years.

Analysts told CNBC the move was a bid to keep ahead of fast-moving rivals like DeepSeek, rather than traditional search players.

“There has been some small pressure on the search business but the focus on AI and Ernie Bot is a key move ahead,” Dan Ives, global head of tech research at Wedbush Securities, told CNBC by email. Ernie Bot is Baidu’s AI chatbot.

“Baidu is not waiting around to watch the paint dry, full steam ahead on AI,” he added.

Baidu AI overhaul

Baidu is China’s biggest search engine, but — as is also being seen by Google — the search market is being disrupted.

Users are flocking instead to AI services such as ChatGPT or DeepSeek, which shocked the world this year with its advanced model it claimed was created at a fraction of the cost of rivals.

But Kai Wang, Asia equity market strategist at Morningstar, also noted that short video platforms such as Douyin and Kuaishou are also getting into AI search and piling pressure on Baidu.

To counter this, Baidu made some major changes to its core search product:

  • Users can now enter more than a thousand characters in the search box, versus 28 previously;
  • Questions can be asked in a more direct and conversational manner, mirroring how people now use chatbots;
  • Users can ask questions through voice but also prompt the seach engine with pictures and files;
  • Baidu has integrated its AI chatbot features, which enable users to generate photos, text and videos, into the product.

“This is more aligned with how people use ChatGPT and DeepSeek in terms of how they look for answers,” Wang said.

Outside of China, Google has also been looking to enhance its core search product with AI, highlighting how search has been under pressure from the burgeoning technology.

Baidu on the offense

Baidu was one of China’s first movers when it came to AI, releasing its first models and ChatGPT-style product Ernie Bot to the public in 2023. Since then, it has aggressively launched updated AI models.

However, the Beijing-headquartered company has also faced intense competition from fellow tech giants like Alibaba and Tencent, as well as upstarts such as DeepSeek.

These companies have also been launching new models and infusing AI into their products and Baidu’s stock has fallen behind as a result. Baidu shares have risen around 2.5% this year, versus a 30.5% surge for Alibaba and a 20% rise for Tencent.

“This is a defensive and offensive move … Baidu needs to be aggressive and perception-wise show they are not the little brother to Tencent on the AI front,” Wedbush Securities’ Ives added.

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