During WWDC last month, Apple finally laid out its AI plans, announcing Apple Intelligence for the upcoming batch of software for iPhones, iPads, and Macs. While Apple Intelligence is coming to all iPhones and iPads that support iOS 18 and iPadOS 18, certain features will be exclusive to iPhone 15 Pro or newer.
This means that to make the most out of Apple Intelligence, you’ll need to invest in a newer iPhone (like the upcoming iPhone 16 series) or the latest iPad with sufficient processing power, which is why Morgan Stanley says that Apple Intelligence is a big reason why more iPhones and iPads could be selling well.
According to AppleInsider, Morgan Stanley said in a note to investors, that Apple Intelligence will boost Apple sales. The investment firm has also raised its target price for Apple’s stock from $216 to $273, which closed at $234.40 on Monday.
The reasoning is simple: Apple Intelligence will start a new cycle where many people upgrade their devices. It won’t work on older devices, which means more people might buy new ones. And as Apple sells more devices, it’s a win-win situation for the company and its investors.
Further, Morgan Stanley adds that Apple might sell nearly 500 million iPhones in the next two years, which is far more than what the company sold between 2021 and 2022. He also anticipates a price hike of 5% that could also be on the cards, which could lead to total revenue of $485 billion by 2026.
Apple Intelligence boosting iPhone or iPad sales had always been in the cards since Apple was very late to the AI party. Its rivals such as Google and Samsung had already positioned themselves. However, by partnering with OpenAI and solidifying its position, Apple stands to lose nothing. Ultimately, it’s not just about who was first, but who executes it best.