Apple Intelligence has been introduced along with the launch of iPhone 16 but despite this, Apple's share price dropped more than 1%.
👉 Background: Every year in September, Apple, (aka the largest company in the world by market value), announces its new products to launch.
👉 What happened: Yesterday, as part of this year's product launch, Apple announced a new Series 10 Apple Watch as well as new Airpods and Airpods Max, But the piece de resistance for Glowtime was the new iPhone 16, which will be rocking Apple Intelligence in it. Despite this, Apple's share price dropped more than 1%.
👉 What else: Apple Intelligence will replace Siri in the iPhone, which has been in need of a desperate upgrade since about the iPhone 4. Apple’s AI is supposedly meant to help you take notes, compose emails and sort photos. In fact, Apple’s CEO’s Tim Cook reckons the iPhone 16 “marks the beginning of a new era” which he hopes will also be the start of a whole new upgrade cycle.
💡The upgrade cycle is the pattern of replacing old technology with newer versions. The goal for tech companies like Apple is to ensure every new product is good enough to justify an upgrade from the old version.
💡Get this, about 300 million iPhones have not been upgraded in more than four years. Given more than 50% of Apple’s revenue comes from the iPhone, there’s a lot of potential revenue to unlock with upgraded iPhones.
💡Apple Intelligence will only work on iPhones 15 or above - so Apple is hoping more than 240 million iPhone units will be sold in the 2025 financial year.
Sign up for Flux and join 100,000 members of the Flux family
