JPMorgan: AppleIntelligence Fails to "Boost" iPhone 16 Sales

JPMorgan: AppleIntelligence Fails to "Boost" iPhone 16 SalesTechnology news outlet AppleInsider reported yesterday (October 2nd) that investment bank JPMorgan believes that AppleIntelligence has not "boosted" sales of the iPhone 16 series. Through surveys of user feedback and monitoring sales data for the iPhone 16 series, JPMorgan found that AppleIntelligence has not had a significant impact on sales at this stage

JPMorgan: AppleIntelligence Fails to "Boost" iPhone 16 Sales

Technology news outlet AppleInsider reported yesterday (October 2nd) that investment bank JPMorgan believes that AppleIntelligence has not "boosted" sales of the iPhone 16 series. Through surveys of user feedback and monitoring sales data for the iPhone 16 series, JPMorgan found that AppleIntelligence has not had a significant impact on sales at this stage. JPMorgan analysts believe this may be due to Apple not yet unlocking the full version of its AI capabilities, resulting in AppleIntelligence having a "weak pull" on orders in the initial release.

JPMorgan's report listed reasons for upgrading to the iPhone 16 series, but AppleIntelligence was not among the top five. Previously, it was widely believed that faster 5G network connectivity and phone speed were the main factors driving users to upgrade. Another issue is that AppleIntelligence currently only supports American English, which also limits its appeal. Analysts predict that demand for the AppleIntelligence model will grow as support for more countries and languages becomes available.

While AppleIntelligence has not yet met expectations, JPMorgan remains optimistic about Apple's overall sales outlook. The firm currently predicts that Apple will sell 76 million iPhones in the fourth quarter of 2024 and reach 148 million units sold over the next four quarters. Based on current sales and Apples projected intelligent growth, JPMorgan maintains a price target of $265 for Apple stock.

JPMorgan's analysis reflects the markets wait-and-see attitude towards AppleIntelligence's initial performance. While AppleIntelligence still has room for improvement in terms of functionality and user experience, it remains a crucial component of Apple's future strategy and will continue to evolve in the future. As product features are refined and market coverage expands, AppleIntelligence is expected to have a greater impact on iPhone sales in the future.