“It’s Glowtime,” Apple (AAPL) said in the invitation to its September 9 event when it will release its iPhone 16 series.As usual, the invitation did not reveal much information about Apple's new products. But what’s different this year is that Apple will focus on its AI feature, Apple Intelligence. In July, Apple introduced a preview of Apple Intelligence, designed to enhance Siri, auto-generate emails and images, and organize notifications. The rollout includes only a partial set of features, not the full suite.The word “Glowtime” in the invitation probably provides a clue about Apple’s AI. The company said Siri would become “more capable, integrated, personal,” with a new design of a glowing light that wraps around the edge of the device screen.Apple said the feature will be available on iPhone 15 Pro series, iPad, and Mac with M1 or later products as part of iOS 18, iPadOS 18, and macOS Sequoia this fall. Bloomberg had reported that the AI function will arrive later than the iPhone 16 debut, probably in October.“There is even more pressure on Apple to deliver the wow on September 9 for its overall product portfolio, but also to put the company back in the zeitgeist of AI,” TheStreet Pro’s portfolio manager Chris Versace said in a recent report.
CUPERTINO, CALIFORNIA - JUNE 10: Apple CEO Tim Cook delivers remarks at the start of the Apple Worldwide Developers Conference (WWDC) on June 10, 2024 in Cupertino, California. Apple will announce plans to incorporate artificial intelligence (AI) into Apple software and hardware. (Photo by Justin Sullivan/Getty Images)Justin Sullivan/Getty Images
iPhone sales are still vital to AppleAbout seven years ago, Apple surprised the market with the launch of the iPhone X, featuring a bold redesign with an all-screen display that marked a significant departure from the iPhone 8. But recent iPhones have led users to question Apple's innovation.“iPhone 15 is so bland,” one Apple fan said on X last year. “This should have been called iPhone 14.2.”.@Apple @tim_cook I'm a die hard Apple fan and iPhone 15 is so bland. I'm skipping and waiting to see iPhone 16.This should have been called iPhone 14.2. This wasn't enough to earn the "15."#disappointed#letdown pic.twitter.com/BgL1XaO60C— Cody (@CodyTheSuperman) September 13, 2023
The iPhone remains Apple's largest business, accounting for about 46% of Apple's total sales.For the fiscal third quarter ended June 29, the segment generated $39.30 billion in revenue, down 1% from last year but exceeding the $38.81 billion forecast, Apple reported on August 1.Earnings for the quarter came in at $1.40 per share, surpassing the consensus estimate of $1.35. Total revenue reached $85.78 billion, up 4.9% year-over-year and above the expected $84.53 billion, marking a record third-quarter performance, the company said.Apple announced on August 26 that it will replace CFO Luca Maestri with current Apple insider Kevan Parekh. Maestri, who was named CFO in 2014 and witnessed Apple stock up over 800%, will stay on in a new role leading Apple’s IT, security, and real estate development teams.Related: Billionaire fund manager unveils bold Apple stock price forecastAnalysts update Apple stock forecastCiti analyst Atif Malik has moved Apple to the firm's “top artificial intelligence pick into 2025” with a buy rating and a $255 price target. Citi is "ok" with the recent CFO transition and believes that the impact of Google’s antitrust case has “priced-in.” Apple receives $20 billion from Google per year for setting Google's search engine as the default on Apple devices. The amount is about 36% of earnings generated from search advertising on the Safari browser, according to Reuters.The analyst further highlights AI as a "compelling upgrade for iPhone refresh next year," expecting the iPhone 16 to further emphasize the AI phone experience.Related: Apple analysts reset targets after C-suite shakeupMorgan Stanley analyst Erik Woodring agrees that Apple Intelligence "remains the key to unlocking pent-up iPhone demand and accelerating the replacement cycle."He expects the launch event to feature AI integration on the new iPhone 16 but also points out that iPhone pricing and battery life will also be key details to watch. The analyst maintains an overweight rating and a $273 price target on Apple shares before the event.Hedge fund Third Point believes AI demand can largely boost Apple’s revenue and earnings in the years ahead. More Tech Stocks:Analysts reset AMD stock outlooks after AI acquisitionAnalyst resets Nvidia stock price target before earningsTrader who predicted Palantir, SoFi, Rocket Lab rallies updates outlook“Despite the stock’s recent strong appreciation, we see room for significant upside ahead as the magnitude of this new AI opportunity surprises,” said Third Point CEO Daniel Loeb in an investor letter released on August 23. “Its stock had become increasingly 'under-owned' by institutional investors.”Third Point started buying Apple shares in April, and the tech giant ranked among the top five gainers in its portfolio for the second quarter, with Apple shares rising around 23% during that time.Related: Veteran fund manager sees world of pain coming for stocks
