Apple Intelligence seems to be resonating with U.S. consumers
Despite the controversy around delayed features for Apple Intelligence, it appears to be resonating with U.S. consumers, according to Morgan Stanley.
According to the investment firm’s latest AlphaWise survey —as noted by Seeking Alpha — Apple Intelligence adoption came in “better-than-expected,” and there is better perception of its capabilities and consumers indicated a willingness to pay.
“While the tariff backdrop creates myriad uncertainties, our March ’25 AlphaWise survey of 3,300 US consumers highlights stronger-than-expected consumer perception for Apple Intelligence, record-high US iPhone upgrade rates, and strong interest in new iPhone form factors,” Morgan Stanley analyst Erik Woodring wrote in a note to clients. “As a result, when we take a step back and think beyond this period of tariff uncertainty, we believe that Apple’s software and hardware advances — if properly executed upon — should help to accelerate device replacement cycles and create incremental Services revenue opportunities, underpinning our Overweight rating.”
In addition to the Overweight rating, he has a $220 price target on Apple. Woodring also said that nearly 80% of all eligible U.S. iPhone owners have downloaded and engaged with Apple Intelligence over the past six months with many describing it as “easy to use, innovative or something that improves their user experience.” Nearly 42% of respondents said it’s extremely or very important for their next iPhone to have Apple Intelligence; and 54% of respondents who are likely to upgrade in the next 12 months said it’s extremely or very important for their next iPhone to have Apple Intelligence.
The AlphaWise survey also showed that on average, U.S. consumers would pay up to US$9.11 per month for unlimited Apple Intelligence access, up 11% from the September 2024 survey. You should note that Apple hasn’t said anything (yet) about Apple Intelligence evolving into a subscription service.
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