The iPhone is today the flagship product of Apple, the world’s most valuable company, valued at over $3.3 trillion (and the only one above the $3 trillion threshold), relies on more than 50% of its sales from the famous smartphone. By the end of 2023 and into 2024, over $383 billion came from the iPhone 15, which had a good sales level.
Now all eyes are on the iPhone 2016 family, which will focus on its innovations, in the use of artificial intelligence. Therefore, everyone is eagerly awaiting the launch, as even a new surge in the stock price is expected, which started this Monday, September 9, at $220.8.
Looking back at past launches, product conferences have always added value to the stock; on June 10, during the Apple Intelligence presentation, the stock surged 7.26% to $207. In May, with the arrival of the iPad, another major debut from the Apple company, the shares moved 1.5%.
Last year, the same happened on October 30 when the new MacBook Pro was announced, adding 2.1% value to the stock that day; even more than the 0.8% increase when the iPhone 15 was announced.
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Will artificial intelligence help Apple sell more iPhones? That question hangs over the tech giant. The iPhone 16 line is not expected to have many new hardware features, beyond the usual faster chips and improved cameras. Instead, Apple is expected to promote its new artificial intelligence feature, called Apple Intelligence, as the main selling point. So far, consumers still have not adopted artificial intelligence capabilities as a primary reason to upgrade.
Samsung, Apple’s main rival in the smartphone market, has heavily promoted the AI capabilities of its latest devices. According to surveys conducted by BayStreet Research in US carrier stores, AI was only a minor selling point for carriers after the initial round of sales.
Another recent survey showed that 7% of consumers had a very high inclination to buy a smartphone based on AI features, according to the research firm Canalys. “AI has not yet resonated with the masses,” said Cliff Maldonado, a senior analyst at BayStreet Research, who studies the smartphone market.
Some investors expect that Apple’s phone sales will increase nonetheless, as many iPhone consumers are ready for an upgrade. Analysts, on average, expect iPhone revenue for its next fiscal year 2025, which ends in September of next year, to grow nearly 5%, according to FactSet.
The demand for Apple’s AI phones will offer another test of the market’s appetite for this technology. The company’s rivals have invested billions in models capable of chatting and interacting with users in a human-like manner, writing and producing images and animations. However, investors are wary of spending on AI this year, as many companies have yet to demonstrate a clear path to profitability.