Apple entered the AI business last month with Apple Intelligence, a set of recent features designed to bring AI on to the screens of iPhone, iPad and Mac. Apple’s AI comes with a catch, nevertheless: It only works on the newest iPhones and might be the rationale why thousands and thousands of iPhone users of older models are seriously considering upgrading, say analysts at Morgan Stanley.
Morgan Stanley analysts named Apple as one in every of the highest stocks on Monday, after which Apple shares rose to an all-time high, per BloombergApple Intelligence is a “clear catalyst” for iPhone upgrades and can enable Apple to sell nearly half a billion iPhones in the following two years, said analyst Eric Woodring.
Apple Intelligence is expected is ready to launch this fall for the iPhone 15 Pro and 15 Pro Max — older iPhones won’t have access to Apple’s AI. The update brings AI-generated emojis, a better Siri, and direct access to ChatGPT, though some anticipated Siri AI upgrades could arrive next 12 months.
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“We believe there will be record pent-up demand later this year ahead of the iPhone 16 cycle,” Woodring noted, adding that Apple Intelligence offers value that’s “unique in the Apple ecosystem.”
Morgan Stanley predicted that Apple will sell around 230 million iPhones in the identical period, making the brand new prediction greater than double the previous one.
Apple can be uniquely positioned to act as an AI base camp for its customers, “just as it has done for digital content (iPod) and social media (iPhone).” wrote Morgan Stanley analyst Ananda Baruah.
Apple CEO Tim Cook waves to customers before they enter the Apple Store on fifth Avenue. (Photo by Drew Angerer/Getty Images)
Other analysts at other firms have made similar predictions. Dan Ives, an analyst at Wedbush Securities, said Reuters in June that greater than 15% of existing iPhone users could purchase the brand new iPhone that Apple is predicted to launch this fall.
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Ives estimates that 270 million iPhone users haven’t purchased a brand new model within the last 4 years.
More than half of Apple’s total revenue within the second quarter of 2024 got here from iPhones; Apple has the bulk of the market share for smartphones within the USA
At the time of writing this text, Apple was the most important company on the earth with a 3.584 trillion US dollars Market capitalization. This was followed by Microsoft, Nvidia, Google and Amazon.
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