The iPhone 16 will be released in September and Apple expects one of the most attractive features to be the arrival of Apple Intelligence, the whole great set of AI-related features that were so talked about at WWDC24. However, the limitations of this technology in terms of geographical availability as well as the limitation to the English language may generate an overly optimistic bias regarding sales forecasts. And that’s according to analyst Ming Chi-Kuo, who warns that Apple hasn’t increased iPhone 16 production compared to iPhone 15 figures over the past year.
Apple Intelligence in iPhone 16 Won’t Increase Device Sales
We have talked a lot about Apple Intelligence since its presentation at WWDC24, such as the limitations that the tool will have in the world as well as the devices that will have all the functions of this new technology. All this, since the presentation of Apple Intelligence, has generated a false expectation of an increased demand for the device. However, Let us recall that Apple’s AI will only be available in English and that the entire European Union is excluded from this technology until at least 2024.
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This is what analyst Ming Chi-Kuo published in a new report, which assures that the production level of the iPhone 16 has not increased compared to the iPhone 15 at the same time last year. This information is extrapolated with the economic growth data of Apple suppliers: TSMC and Largan. The forecasts, therefore, There would be around 87 million iPhone 16s for the second half of 2024, 4 million less than the iPhone 15 produced in the second half of 2023 (91 million).
Therefore, what Kuo is trying to argue is that Perhaps a pump of optimism is being generated around Apple’s upcoming iPhone 16 very focused in particular on the arrival of Apple Intelligence:
Regardless of whether Apple Intelligence alone can drive replacement demand (which is another big issue), the expectation that consumers will buy the new iPhone 16 for Apple Intelligence beta in the second half of 2024 may be overly optimistic.
