Apple recently announced its AI features, which have sparked interest from many, but requires an iPhone 15 Pro or iPhone 16 models, and the latter will be launched later this year. It was previously speculated that the iPhone 16 could see an uptick in sales, all thanks to the company's new AI efforts. However, we should not be too optimistic at this stage, as one analyst claims that the orders of the iPhone 16 will be the same as the current models despite a new design and upgraded internals with Apple Intelligence support.
iPhone demand could remain the same as last year, even after various changes in design and the inclusion of Apple Intelligence
Apple Intelligence is one of the key selling points of iOS 18, and Apple's upcoming iPhone 16 models could get some exclusive features, which was previously a valid argument in favor of increasing sales. However, analyst Ming-Chi Kuo, in his latest post on Medium, states that the company's AI features or Apple Intelligence will not have an impact on the iPhone 16's sales or orders from suppliers.
The analyst gives two reasons why the iPhone 16 sales would remain the same, as he quoted TSMC stating that it did not see an increase in unit growth for this year, which means that the orders have been kept the same. Additionally, he also stated that Largan, one of Apple's suppliers, claims that orders for the high-end models are the same as last year as well.
According to Kuo, Apple's iPhone 16 orders for the second half of this year will rest at around 87 million units, which is 4 million less than that of the iPhone 15's orders in the same duration. While Kuo does state that suppliers might have been asked to increase the order count, it could be for "specific reasons within individual industries or components."
Moreover, Kuo was also adamant on the notion that Apple Intelligence pushing iPhone 16 sales "may be too optimistic." This is because Apple Intelligence will only be available in a single language - U.S. English, which means that its market will be pushed back in other regions. The company's decision to not bring the AI technology to the EU will also contribute to keeping the demand for the handset the same.
The launch of Apple Intelligence is generally considered to be the reason for the increase in iPhone 16 orders. However, Apple Intelligence will only be available in Beta for US users in 2H24, and Apple Intelligence Siri only supports English. Regardless of whether Apple Intelligence alone can drive replacement demand (which is another big topic), the expectation that consumers will buy the new iPhone 16 for the Beta version of Apple Intelligence in 2H24 may be too optimistic.
Bloomberg recently suggested that the demand for iPhone 16 would be boosted by 10 percent this year, with Apple Intelligence dragging the device to new heights. However, Kuo believes that this might not be the case. We believe that Apple Intelligence's availability in fewer markets would play an important role in gathering demand, but we are not completely sure if it would be less than last year. Since the final word rests with Apple, it would be best to take the news with a grain of salt.
About the author: Ali Salman is a technology reporter for Wccftech mobile section with a specialized focus on Apple and the intellectual property that drives mobile innovation. He has cultivated a unique expertise in analyzing and deconstructing complex technology patents, translating dense legal and technical documents into clear, insightful reports on future products.
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