Apple’s iPhone 16 event will put AI plans in the spotlight

Apple AAPL it is is expected to unveil its shiny new iPhone 16 models at its annual event on Monday, phones that will come loaded with the latest operating software capable of supporting the tech giant’s glittering foray into the world artificial intelligence.

In June, Apple has finally unveiled its first AI initiativeknown as Apple Intelligence — a set of AI-based features for Safari, Notes, Calculator, and especially Siri for iOS 18, iPadOS 18, and macOS Sequoia.

The integration of AI into Apple’s popular devices will allow users to further customize their home screens, get better responses from its voice assistant, and even access ChatGPT directly from their device, among other new features.

Analysts have high hopes for the fresh technology, which will be one of the biggest operating software advances Apple has introduced in years. Goldman Sachs analysts led by Michael Ng said in a June research note that AI-enabled features will be a catalyst for strong upgrade demand for the latest models.

This is especially true given that the AI ​​functions, which are expected to do so release as a software update in beta form in October, are only available on iPhone 15 Pro or later. The upcoming iPhone 16 is expected to come with iOS 18 pre-installed. (The full range of Apple Intelligence features may not come to iPhones until the beginning of 2025reports Bloomberg.)

Goldman said the strong performance of the iPhone 15, which outsold the previous model in the same time since launch, could indicate strong demand based on Apple Intelligence. The investment bank’s researchers believe that Apple’s estimated 5% year-over-year revenue growth in the fourth quarter implies strong iPhone revenue growth – and strong demand for the upcoming iPhone 16.

The iPhone maker is long overdue for a turbocharged upgrade cycle: About 300 million iPhones worldwide haven’t been updated in more than four years, according to estimates from investment firm Wedbush.

Meanwhile, less than 10 percent of current iPhone users could use the new AI features, with more than 40 percent of Apple’s more than 800 million smartphones being iPhone 12 or older, a Bloomberg. analysis performances.

Wedbush analysts, led by Dan Ives, said in a report Last month, Apple Intelligence will mark the beginning of the “consumer AI revolution,” with more than 240 million iPhones potentially sold in fiscal 2025 as a result of the AI-driven upgrade cycle.

And it could be a major boon for Apple’s market value, which is up more than 20% this year. Wedbush analysts said Apple’s AI technology could add $30 to $40 per share, resulting in more than 4 trillion dollars in added market capitalization for the tech giant.

Apple’s entry into the AI ​​race has been slow. The Cupertino, California-based company has remained silent on its AI strategy for a year and a half when OpenAI launched its wildly popular AI chatbot ChatGPT in late 2022, followed by Google, Microsoft and Meta. And of Microsoft and Google’s AI tools are already driving sales at the two companies.

Aside from AI, the iPhone 16 Pro and Pro Max are rumored to have larger screens and could come in a new bronze-toned matte color, potentially called “Desert Titanium.”