Apple iPhone 16 reveal offers ‘no surprises,’ AI rollout in focus- analysts

Investing.com-- Apple Inc (NASDAQ:AAPL) revealed the latest iterations of its flagship iPhone on Monday, with analysts stating that the new, artificial intelligence-powered features were in line with expectations.

The Cupertino-based giant announced a slew of new AI features, including improvements to its Siri voice assistant and a slew of smart camera features aimed at professional video editing. These features will be rolled out gradually in the coming months.

Analysts said that the new iPhones and AI features were largely in line with expectations set by Apple’s earlier reveal of its plans for a push into AI, called “Apple Intelligence.” But some analysts warned that the gradual roll-out of AI features could deter immediate buyers, especially amid tough competition from rivals such as Samsung (KS:005930) and Huawei, who already have AI features in their flagship offerings.

Apple is yet to find an AI partner for China, which is one of its biggest markets. The company has been grappling with an over year-long decline in Chinese iPhone sales.

Beyond the iPhone, Apple also unveiled new versions of its smart watches and AirPods. Apple's shares were largely unchanged after Monday's reveals.

iPhone 16 offers ‘no surprises,’ higher trade-in prices in focus- Jefferies

Analysts at Jefferies said the new AI features in the iPhone 16 were in line with expectations, but noted that higher trade-in prices were more likely to entice customers and feed an upgrade cycle.

The brokerage said Apple needed to offer more aggressive trade-in prices, especially in China, to entice customers into upgrading to the new iPhone, especially amid a lack of notable hardware changes for the new models.

Jefferies said that Apple’s AI features will spur only a gradual acceleration in sales, and that expectations for a near-term sales rebound were likely to cool.

The brokerage has a Buy rating on Apple with a PT of $205.

AI to spur 2-year growth cycle, watch wearables- Evercore

Analysts at Evercore said Apple’s new reveals, especially on AI, were a “more polished version” of the firm’s announcements during its WWDC in June.

Evercore said Apple’s staggered AI rollout could “elongate” a replacement cycle for the iPhone, but still keep overall sales growth positive.

The brokerage said it continues to see growth in iPhone revenues over 2025 and 2026, and said the new Apple Watches and AirPods should provide a boost to wearables revenue, which has been stagnant in recent quarters.

Evercore has an Outperform rating on Apple with a PT of $250.

Apple to see ‘renaissance’ of iPhone growth, PT hiked- Wedbush

Analysts at Wedbush struck a far more positive tone, stating that the new AI features were likely to spur strong sales growth over the “next 12 to 18 months.”

Wedbush also expects stronger sales to drive up Apple’s share price to a market capitalization of $4 trillion in 2025.

The brokerage hiked its PT to $300 from $285, and maintained its Outperform rating on Apple.

This article first appeared in Investing.com