The iPhone 16 lineup is set to be part of Apple’s announcements during the ‘It’s Glowtime’ event scheduled for September 9. Apple anticipates that the multitude of upgrades, including support for Apple Intelligence, will drive increased demand for the new models. A recent report estimates that the supply of iPhone 16 units has increased by 10 percent compared to last year’s iPhone 15 series.
According to a report from Nikkei Asia, Apple has instructed its suppliers to increase iPhone 16 production to between 88 million and 90 million units. This isn’t the first time a 90-million shipment target for 2024 has been mentioned. China is expected to account for the majority of this initial shipment, although it might be challenging for Apple to dominate due to Huawei’s resurgence.
Jeff Pu, managing director of Haitong Securities, suggests that Apple Intelligence will not be a major selling point for the iPhone 16 models. He believes that 2025 could offer more opportunities for Apple to expand its generative AI features. Previous analyses have indicated that generative AI was a key reason for customers upgrading to Samsung’s Galaxy S25 models, so it remains to be seen how this prediction holds for Apple.
“We anticipate a relatively modest recovery this year. Apple Intelligence features, while promising, may not deliver groundbreaking advancements in 2024. We believe that 2025 could be a more significant year as the broader AI ecosystem matures,” Pu commented.
For customers considering an upgrade to the iPhone 16, Apple Intelligence was not cited as the primary motivation. A survey revealed that a competitive price and a capable cooling solution were the main preferences. Notably, like the iPhone 15 Pro and iPhone 15 Pro Max, all iPhone 16 models are rumored to feature 8GB of RAM as standard, which might not be sufficient for some users. Those considering skipping the upcoming generation will be interested to know that the iPhone 17 lineup is expected to offer 12GB of RAM, facilitating a range of generative AI-related functions.
