Apple iPhone 16 event kicks off ‘historic week’ for tech giant: analysts

from Apple AAPL capable of artificial intelligence The iPhone 16 range will spark a new rush for consumer AI and usher in a new era of growth for the tech giant, according to analysts at Wedbush.

Fans and investors alike will get their first official look at the latest iPhone model at Apple’s event on Monday, held at the Steve Jobs Theatre in the company’s headquarters in California.

While this latest batch of smartphones is expected to come in new colors and bigger screens, the star of this year’s event will be the company’s foray into AI: Apple Intelligence. The phones will come loaded with iOS18, the latest operating software that will allow users to access the new technology.

Wedbush analysts led by Dan Ives said in a research note on Sunday that this would kick off Apple’s “biggest upgrade cycle” in its history, including growth in China, where sales lagged behind. According to their estimates, Apple could sell more than 240 million iPhones worldwide in the next fiscal year thanks to this AI-driven upgrade cycle.

“We believe the demonstrations at the Apple Park event will be eye-opening and speak to the broader strategic vision for consumers looking to upgrade to the iPhone 16,” analysts said. “In short, this is a historic week for Apple and we believe the next stage of Apple’s growth story begins for (Apple CEO Tim Cook) and Cupertino.”

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.

Given the popularity of Apple’s iPhone, Wedbush estimates that approximately 20% of consumers worldwide will access and interact with generative AI applications through Apple devices in the coming years, starting with iPhone 16.

But to access these new features, many users need to upgrade. Less than 10 percent of current iPhone users would have access to Apple Intelligence with their current model, with more than 40 percent of Apple’s more than 800 million smartphones being iPhone 12 or older, a Bloomberg. analysis performances.

To attract buyers, Wedbush expects the iPhone 16 lineup to be priced around the same as the iPhone 15 — which started at $799, with its Pro models starting at $999. According to analysts, “Apple won’t lose any updates (and the move to AI) to a price increase.”