Apple recently unveiled its latest AI features, sparking significant interest among many users. However, these features require an iPhone 15 Pro or the upcoming iPhone 16 models, set to launch later this year. Initial speculations suggested that these AI advancements could boost iPhone 16 sales. However, caution is advised, as one analyst predicts that iPhone 16 orders will remain on par with current models, despite the new design and upgraded internals supported by Apple Intelligence.
iPhone Demand Expected to Remain Steady Despite Apple Intelligence and Design Changes
Apple Intelligence, a highlight of iOS 18, promises to bring exclusive features to the upcoming iPhone 16 models. Initially, this was seen as a potential driver for increased sales. However, analyst Ming-Chi Kuo, in his recent Medium post, argues that Apple’s AI features, or Apple Intelligence, will not significantly impact iPhone 16 sales or supplier orders.
Kuo provides two main reasons for his prediction. First, he cites TSMC, which reported no increase in unit growth for the year, indicating that orders have remained consistent. Additionally, Largan, another Apple supplier, confirmed that orders for high-end models are the same as last year.
According to Kuo, Apple’s iPhone 16 orders for the latter half of this year are projected to be around 87 million units, which is 4 million units fewer than the iPhone 15 orders during the same period. While there are suggestions that suppliers might be asked to increase order quantities, these increases could be for specific reasons within individual industries or components.
Furthermore, Kuo is skeptical about the optimistic outlook for Apple Intelligence driving iPhone 16 sales. He points out that Apple Intelligence will initially be available only in U.S. English, limiting its market reach in other regions. Apple’s decision not to roll out the AI technology to the EU immediately will also contribute to maintaining the current level of demand for the handset.
Additional Insights and Predictions
While the AI-driven features of Apple Intelligence are impressive, their limited availability could hinder widespread adoption. The market’s response to Apple Intelligence will be crucial in determining the actual impact on iPhone 16 sales. As Apple continues to innovate, the company must consider regional differences and expand its AI capabilities to cater to a broader audience.
Moreover, the iPhone 16’s new design and upgraded internals are expected to attract some buyers, but the overall market demand may not see a significant surge. The anticipation for the iPhone 16 is high, but realistic expectations suggest that sales will remain steady, mirroring the trends observed with the iPhone 15.
Conclusion
In summary, while Apple Intelligence and the new features of the iPhone 16 present exciting prospects, it’s essential to manage expectations. The anticipated sales boost might not materialize as dramatically as some predict. As always, Apple’s continued success will depend on its ability to innovate and adapt to market demands, ensuring that it meets the diverse needs of its global customer base.
By Andrej Kovacevic
Updated on 19th July 2024