Apple Intelligence, a much-anticipated feature, hasn’t significantly impacted iPhone 16 sales so far. JP Morgan analysts report that early sales of the iPhone 16 Pro models are lower than expected. Many customers are waiting for AI capabilities to improve before making a purchase. While Apple Intelligence is promising, it hasn’t become a key reason for users to upgrade yet.
Consumer Preferences Shift as Apple Intelligence Expands
For now, consumers continue to prioritize traditional factors like 5G connectivity and phone speed. According to a survey, Apple Intelligence ranks sixth on the list of reasons people are upgrading. The limited availability of AI features, which currently support only US English, is likely contributing to this slower adoption.
However, demand for the iPhone 16 is expected to rise. As Apple Intelligence becomes available in more languages and countries, more users may be inclined to upgrade. Additionally, interest from Android users switching to iPhone has grown, especially among those considering higher-end models.
Predictions for iPhone 16 and Apple’s Future
JP Morgan analysts predict Apple will sell 76 million iPhones in Q4 2024, with 148 million units expected over the next year. Though initial sales of the iPhone 16 have been slower compared to the iPhone 15, experts remain confident. The expansion of Apple Intelligence and increasing interest from consumers will likely drive future sales.
Apple’s stock price target remains at $265, reflecting analysts’ optimism about the company’s long-term growth, despite the slower start with the iPhone 16.
