The iPhone is referred to as a so-called supercycle when users rapidly switch to new devices due to major changes in hardware and software. In the past, this applied to Apple’s entry into the 5G smartphone market, the introduction of Dynamic Islands and – at least partially – the launch of USB-C iPhones. Research house Wedbush now thinks the iPhone 16 could be ready again this fall. The reason is Apple Intelligence, the new software and hardware function in the field of generative artificial intelligence that Apple wants to introduce.
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Apple Intelligence only with iPhone 15 Pro, 15 Pro Max and 16
Because these are only available to a very limited extent on the iPhone. They will run on the 15 Pro and 15 Pro Max models alone – as well as (possibly) all iPhone 16 models. According to Apple, there is no marketing reason for this, but rather a purely technical one. Only the neural engine built into the A17 Pro should be able to deal with the local large language models (LLMs) used by Apple. In addition, there is apparently a minimum of 8 GB of main memory required, which is only used from the A17 Pro onwards. However, things look much better on the Mac (and iPad); even the M1, which was introduced in 2020, is supported by Apple Intelligence.
According to Wedbush, demand for the iPhone 16 could be so high that Apple’s problems with iPhone sales in China will be overcome. Apple is increasingly seen on Wall Street as a kind of gatekeeper for end-customer AI systems. Instead of lagging behind competitors like OpenAI, Meta or Google, the company could succeed in gaining leadership in the market.
Language barriers, functions and the EU
However, these are still investors’ dreams. Apple Intelligence cannot even be used by users of the current developer beta of iOS 18 yet; Apple is apparently also planning a waiting list for developers. In addition, AI services will only be available in US English this year, and functions like improved Siri will also not be completed until next year (such as full access to what is visible on the screen). Ultimately, Apple has decided not to introduce Apple Intelligence in the EU initially due to regulatory disputes.
Wedbush still sees great opportunities for Apple. The financial institution estimates that a total of 270 million iPhone users have not purchased a new device in the past four years. Analysts also expect the iPhone 16 to emerge from negative growth in China for the first time. The services business could grow by more than $10 billion per year; Wedbush describes the “upside” on the stock as between $30 and $40 per share. The analysts have a price target of $275. The price is currently below $209.
(B.Sc.)
