Investment bank JP Morgan forecasts a significant increase in iPhone upgrades as the iPhone 16 is expected to introduce AI features focusing on privacy and app improvements. Analysts predict a surge in user interest and positive impact on the App Store, despite current challenges in the Chinese market. Apple’s strategy at WWDC 2024 is likely to emphasise software updates and AI integration.
JP Morgan Predicts iPhone 16 Upgrade Surge Due to AI Innovations
Investment bank JP Morgan anticipates a significant increase in iPhone upgrades due to upcoming AI features, particularly expected in the iPhone 16, to be unveiled at Apple’s Worldwide Developers Conference (WWDC) on June 10, 2024. Analysts believe these AI enhancements, focused on on-device privacy and improvements to native apps, will drive user interest and reassure investors about Apple’s competitiveness in the AI landscape.
JP Morgan forecasts that around 20% of iPhone users might upgrade by 2025, mirroring the adoption rate seen with the advent of 5G. This surge is predicted despite Apple’s current challenges in the competitive Chinese market.
Although third-party apps may not immediately benefit from Apple’s AI advancements, the impact on the App Store is expected to be positive, with increased app sales and higher pricing for AI-driven features. Significant hardware upgrades are projected for the iPhone 17, but the AI features debuting with iPhone 16 are likely to stimulate earlier interest and sales.
WWDC 2024 is anticipated to focus mainly on software updates, despite occasional hardware launches in the past. This aligns with Apple’s strategy to highlight its software prowess and AI integration capabilities.
This development comes alongside Apple’s strategic emphasis on integrating AI while maintaining on-device privacy, reflecting a balance between innovation and user security.
