On September 9, Apple is set to unveil its highly anticipated iPhone 16 lineup, which will be equipped with the company’s latest advancements in artificial intelligence (AI). These innovative features will be exclusive to the new models, leaving older devices without access. Although Apple Insight is still in its early stages, the company is reportedly developing new AI capabilities, which could potentially be offered as premium features in the future, though details remain limited at this time. The combination of iPhone 16 and Apple Insight is expected to play a crucial role in revitalizing the AI-driven smartphone market, according to recent reports.
The iPhone 16 and Apple Insight are poised to significantly impact the AI smartphone market after two years of decline. Initially, reports suggested that Apple Insight might not have a direct impact on iPhone 16 sales. However, if Apple introduces new, compelling front-facing features, the sales trajectory could see a significant boost. Currently, it all hinges on Apple’s strategy to introduce unique features in the iPhone 16 series. Even if some features don’t materialize, the synergy between Apple Insight and the iPhone 16 could set the stage for the AI smartphone market to flourish in the coming year.
There’s little doubt that Apple’s AI features will enhance the company’s sales in the latter half of this year, with some analysts predicting a 10 percent year-over-year growth. According to a recent study by Counterpoint Research, the widespread adoption of generative AI technology is expected to drive overall growth in the smartphone market. While the entire industry might experience noticeable expansion, Apple could see a substantial increase in overall shipments.
The report highlights that global smartphone shipments are projected to trend upwards after two consecutive years of decline, with an estimated 1.23 billion units shipped, marking a 5 percent growth in the smartphone industry. For 2025, the report anticipates an additional 3 percent growth, with Apple playing a pivotal role. Senior analyst Harmeet Singh Walia notes, “The share of GenAI-capable smartphones is expected to increase from less than one-fifth in 2024 to more than half by 2028.”
Apple Insight, in particular, is expected to be a major contributor to this growth across all GenAI devices. Furthermore, this could provide Apple with an opportunity to dominate annual shipments as early as 2025. The report also suggests that Apple might enter the foldable phone market in 2027, introducing its first foldable iPhone, which could further drive revenue and act as a catalyst for growth in the foldable smartphone sector.
As we await the official launch of the iPhone 16 lineup and Apple Insight’s capabilities, all eyes are on Apple’s “It’s Glowtime” event next month. The company is also expected to announce the new Apple Watch Series 10, which will feature a significant redesign, addressing users’ longstanding requests. Will Apple lead the charge in the next wave of GenAI devices across the industry? Time will tell.
By Andrej Kovacevic
Updated on 30th August 2024