Create your very own Auto Publish News/Blog Site and Earn Passive Income in Just 4 Easy Steps
Apple entered the AI business last month with Apple Intelligence, a set of new features designed to bring AI directly to the screens of iPhone, iPad and Mac. Apple's AI comes with a catch, however: It only works on the latest iPhones and could be the reason why millions of iPhone users of older models are seriously considering upgrading, say analysts at Morgan Stanley.
Morgan Stanley analysts named Apple as one of the top stocks to buy on Monday, sending Apple shares to an all-time high, according to Bloomberg. Apple Intelligence is a “clear catalyst” for iPhone upgrades and will enable Apple to sell nearly half a billion iPhones in the next two years, said analyst Eric Woodring.
Apple Intelligence is expected to arrive 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 smarter Siri, and direct access to ChatGPT, though some anticipated Siri AI upgrades could arrive next year.
Related: Apple expands the capabilities of the iPhone. That changes immediately.
“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 is “unique in the Apple ecosystem.”
Morgan Stanley had previously forecast that Apple would sell around 230 million iPhones in the same period, making the new forecast more than double the previous one.
Apple is also uniquely positioned to serve as an AI “base camp” for its customers, “just as it has done for digital content (iPod) and social media (iPhone),” wrote Ananda Baruah, an analyst at Morgan Stanley.
Apple CEO Tim Cook waves to customers before they enter the Apple Store on 5th Avenue. (Photo by Drew Angerer/Getty Images)
Other analysts at other firms have made similar predictions. Dan Ives, an analyst at Wedbush Securities, told Reuters in June that more than 15 percent of current iPhone users could buy the new iPhone that Apple is expected to launch in the fall.
Related topics: Apple calls these 3 cult products “vintage” and soon “obsolete”
Ives estimates that 270 million iPhone users have not purchased a new model in the last four years.
More than half of Apple's total revenue in the second quarter of 2024 came from iPhones; Apple has the largest market share in smartphones in the US
At the time of writing, Apple was the largest company in the world with a market capitalization of $3.584 trillion, followed by Microsoft, Nvidia, Google and Amazon.
Related topics: Warren Buffett had to work from his iPhone after Berkshire Hathaway's phone lines went down: “I'm glad we didn't sell all of our Apple”
Create your very own Auto Publish News/Blog Site and Earn Passive Income in Just 4 Easy Steps
