Analysts from Piper Sandler expect strong demand and higher pricing for the iPhone 16 due to the integration of the Apple Intelligence artificial intelligence system. The forecast comes through insights reported by the Apple Insider portal, which cites the research from Piper Sandler.
Industry observers note that the AI features in the upcoming Apple models are likely to drive substantial early sales, even if the Apple Intelligence system does not launch simultaneously with the new iPhones. Over time, the rollout of devices could slow as the initial excitement settles and distribution finds its rhythm.
The report highlights that the new smartphones may not showcase radical hardware breakthroughs. As a result, Apple could need to raise device prices to support the large investments required for advancing artificial intelligence development, a move that might temper the pace of flagship sales growth.
Still, Piper Sandler expects additional momentum from the potential introduction of an Apple Watch SE and a more affordable AirPods option to bolster overall hardware sales.
Apple is slated to unveil the next wave of devices during its It’s Glowtime event, where the company will present the iPhone 16, the Apple Watch X series, and a new generation of AirPods. The event is anticipated to occur as part of a major product showcase, underscoring Apple’s strategy to blend AI capabilities with popular wearable and audio ecosystems.
Historically, Apple has experimented with modular concepts through various partners. While the modular design idea has been associated with other brands in the past, Apple’s current path emphasizes integrated hardware and software ecosystems that leverage artificial intelligence to enhance user experiences across devices.