Apple iPhone 16 unveils ‘no surprises’, AI launch in focus – By Investing.com analysts

Investing.com– Apple Inc (NASDAQ: ) unveiled the latest iterations of its flagship iPhone on Monday, with analysts saying new AI-powered features were in line with expectations.

The Cupertino giant announced a number of new AI features, including improvements to its voice assistant Siri and a number of smart camera features aimed at professional video editing. These features will be rolled out gradually over the coming months.

Analysts said the new iPhones and AI features were largely in line with expectations set by Apple’s earlier disclosure of its plans to enter AI, dubbed “Apple Intelligence.” But some analysts have warned that the gradual rollout of AI features could deter early buyers, especially amid stiff competition from rivals such as Samsung ( KS: ) and Huawei, which already have AI features in their flagship offerings.

Apple has yet to find an AI partner for China, which is one of its biggest markets. The company is facing a more than a year-long decline in iPhone sales in China.

Beyond the iPhone, Apple also unveiled new versions of its smartwatches and AirPods. Apple shares were largely unchanged after Monday’s revelations.

iPhone 16 offers ‘no surprises’, higher trade-in prices in focus – Jefferies

Analysts at Jefferies said the iPhone 16’s new AI features were in line with expectations, but noted that higher trade-in prices are more likely to attract customers and fuel an upgrade cycle.

The brokerage said Apple needs to offer more aggressive trade-in pricing, particularly in China, to entice customers to upgrade to the new iPhone, especially amid the lack of notable hardware changes for the new models.

Jefferies said Apple’s AI features will spur only a gradual acceleration in sales and that expectations for a near-term sales rebound are likely to cool.

The brokerage has a Buy rating on Apple with a PT of $205.

AI to boost 2-year growth cycle, wearable watches – Evercore

Analysts at Evercore said Apple’s new revelations, particularly about AI, were a “more refined version” of the company’s announcements during June’s WWDC.

Evercore said Apple’s staggered rollout of AI could “lengthen out” a replacement cycle for the iPhone but still keep overall sales growth positive.

The brokerage said it continues to see iPhone revenue growth in 2025 and 2026 and said the new Apple Watches and AirPods should provide a boost to wearables revenue, which has stagnated in recent quarters.

Evercore has an Outperform rating at Apple with a PT of $250.

Apple will see “resurgence” in iPhone growth, PT- Wedbush said

Analysts at Wedbush struck a much more positive tone, saying new AI features could drive strong sales growth over the “next 12 to 18 months.”

Wedbush also expects stronger sales to boost Apple’s stock price to a market cap of $4 trillion in 2025.

The brokerage raised its PT to $300 from $285 and maintained its Outperform rating on Apple.