Apple is set to unveil the new iPhone 16 lineup on September 9, featuring innovative AI capabilities exclusive to these models. Although Apple Intelligence is a recent development, the company is likely preparing additional AI features, potentially as premium offerings, though details remain sparse. The integration of Apple Intelligence with the iPhone 16 is anticipated to catalyze growth in the AI smartphone market, which has been in decline for the past two years.
Initial reports suggested that Apple Intelligence might not significantly impact iPhone 16 sales. However, if meaningful new features are introduced, the market trajectory could shift positively. The iPhone 16 and Apple Intelligence together could become a pivotal force in the AI smartphone sector in the coming year.
Several assessments predict that Apple’s new AI functionalities will enhance the company’s sales in the latter part of the year, with some estimates pointing to a 10 percent increase in year-over-year growth. A recent study from Counterpoint Research highlights that the broader adoption of generative AI is set to drive expansion across the entire smartphone industry. This growth could be particularly significant for Apple in terms of overall shipments.
The study forecasts global smartphone shipments will rise after a two-year slump, reaching approximately 1.23 billion units, equating to a 5 percent industry growth. Looking further ahead to 2025, the industry is anticipated to grow another 3 percent, with Apple playing a crucial role. According to Senior Analyst Harmeet Singh Walia, “The share of GenAI-capable smartphones is expected to increase from less than one-fifth in 2024 to over half by 2028.” Apple Intelligence is expected to be a major driver of growth for all generative AI devices.
Additionally, the report speculates that Apple may enter the foldable phone market by 2027, with its first foldable iPhone potentially boosting the company’s revenue and spurring broader interest in foldable smartphones.
As the “It’s Glowtime” event approaches next month, industry watchers are eager to see how Apple Intelligence and the iPhone 16 will perform in real-world scenarios. The event will also showcase the new Apple Watch Series 10, which promises significant redesigns long desired by users. Observers are keen to know if Apple will pioneer the next generation of GenAI devices in the industry.
