Apple (AAPL) is gearing up to reveal its latest iPhone lineup at the product launch event, scheduled later today. It is worth highlighting that the most important upgrade to the iPhone 16 models is the integration of Apple’s AI technology, “Apple Intelligence.”
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Launched in June, Apple Intelligence will be available on the upcoming models and the previous generation iPhone 15 Pro. It offers features like an improved Siri voice assistant, custom emoji creation, photo editing capabilities, and integration with OpenAI’s ChatGPT.
To ensure that these AI-powered features run smoothly on a mobile device, Apple has equipped the iPhone 16 models with the new A18 chip. Built on Arm Holdings’ (ARM) latest V9 design architecture, this chip is expected to handle complex AI tasks efficiently.
AI to Drive iPhone Sales
The adoption of Arm’s V9 chip design for the iPhone, which accounts for nearly half of Apple’s revenue, underscores the company’s commitment to advancing AI technology.
While AAPL faces increasing competition from China-based smartphone brands, particularly within the Chinese market, this move could support a rebound in iPhone sales in the region.
Further, the growing integration of AI into everyday life may lead to a greater consumer appetite for AI-powered iPhones. Thus, Apple’s upcoming iPhones with new designs and AI features are expected to drive the company’s sales.
Is Apple a Buy, Sell, or Hold?
AAPL has a Moderate Buy consensus rating based on 24 Buys, nine Holds, and one Sell rating assigned by analysts in the past three months. The analysts’ average price target on Apple stock of $250.74 implies 13.55% upside potential. Shares of the company have gained 15.1% year-to-date.
