Apple iPhone 16 sales likely ‘stronger for longer’ thanks to gradual Apple Intelligence rollout – analyst

Sales of Apple’s iPhone 16 range are likely to be “stronger for longer” because of the gradual rollout of Apple Intelligence functions, a Wall Street analyst says.

Patrick Seitz for Investor’s Business Daily:
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“The iPhone 16 cycle will likely have a longer tail than most iPhone upgrade cycles for two reasons,” Evercore ISI analyst Amit Daryanani said in a client note.

First, “AI features will have a staggered rollout and will likely not be fully available until calendar 2025,” he said.

Second, positive word of mouth about AI features will spread steadily and convince owners of older iPhones to upgrade “as time goes on,” Daryanani said.

“The initial rollout of AI will only function in American English and features will likely be limited to alert recaps, content summaries (webpages, notes, transcripts, etc.), image generation, and a few other features,” Daryanani said.

He added, “The more compelling upgrades like semantic indexing (personal context), enabling Siri to have greater control over apps and other phone features, and on screen awareness may not be available until calendar 2025.”

Daryanani reiterated his outperform rating on Apple stock and raised his price target to 250 from 220.

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MacDailyNews Take: Apple’s lateness in AI and scramble to catch up — announcing at WWDC, actually delivering much later; in some cases (other languages beyond American English), years later — has a silver lining! It’ll drive iPhone 17 sales, even, and beyond!
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