Apple stock slid more than 2% in morning trading Monday following a burst of analyst reports that suggested early demand for the company’s latest smartphone, iPhone 16, is lagging behind the release of last year’s model around the same time period.

The Street reported findings from Citigroup, Jefferies, and TF International Securities analyst Ming-Chi Kuo that indicated demand for the AI-capable phone is softer than 2023 levels.

Kuo, who has accurately predicted Apple’s moves in the past, estimated the first weekend of preorder sales for the iPhone 16 brought in about 37 million units, down nearly 13% from the equivalent weekend of last year’s iPhone 15 sales debut. “The key factor is the lower-than-expected demand for the iPhone 16 Pro series.” he wrote in a post on Monday.

Earlier this year, Kuo authored a report saying iPhone shipments will decline as much as 15% year over year in 2024, owing to a drop in iPhone sales in China coupled with the emergence of generative AI-powered and foldable smartphones, which will put pressure on iPhone sales throughout the year.

Meanwhile, Jefferies noted that some iPhone 16 models are available for store pickup almost immediately, suggesting softer consumer interest. And Citi pointed to intensifying competition in China and upgrade fatigue as among the factors explaining the weaker demand.

Apple’s newest iPhone model is a key component in the company’s AI strategy, which centers on bringing powerful and intuitive new use cases to everyday users. Apple touts its AI platform, Apple Intelligence, as one of the main selling points for its latest phones, as its software will only run on last year’s iPhone 15 Pro or newer models.

Analysts are banking on that upgrade incentive to reinvigorate iPhone sales and push the stock’s value higher.