Apple entered into it game last month with Apple Intelligence, a set of new features designed to directly bring artificial intelligence iPhone, iPadAND spades screens. Apple's artificial intelligence has a catch however: it only works on newer iPhones, and may be why millions of iPhone users with older models are seriously considering upgrading, Morgan Stanley analysts say.
Morgan Stanley analysts named Apple a top stock pick on Monday, after which Apple shares jumped to an all-time high, for Bloomberg. Apple Intelligence is a “clear catalyst” for iPhone improvements and will enable Apple to sell nearly half a billion iPhones in the next two years, analyst Eric Woodring said.
Apple's intelligence is EXPECTED to come out this fall for the iPhone 15 Pro and 15 Pro Max — older iPhones won't have access to Apple's AI. The update offers AI-generated emoji, a smarter Siri, and direct access to ChatGPTalthough some anticipated improvements to Siri AI may arrive next year.
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“We believe there is a record level of pent-up demand entering the iPhone 16 cycle later this year,” Woodring noted, adding that Apple Intelligence provides value “unique to the Apple ecosystem.”
Morgan Stanley previously foreseen that Apple will sell about 230 million iPhones in the same time frame, making the new forecast more than double the previous one.
Apple is also uniquely positioned to be the “base camp” of AI for its customers, “just as it has done for digital content (iPod) and social media (iPhone).” has written Ananda Baruah, Morgan Stanley analyst.
Apple CEO Tim Cook greets customers before entering Apple's 5th Avenue store. (Photo by Drew Angerer/Getty Images)
Other analysts at different firms have made similar predictions. said Wedbush Securities analyst Dan Ives Reuters in June that more than 15% of existing iPhone users can buy Apple's new iPhone expected to be released this fall.
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Ives estimated that 270 million iPhone users have not purchased a new model in the past four years.
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At the time of writing, Apple was the largest company in the world with one 3.584 trillion dollars market cap. Microsoft, Nvidia, GoogleAND Amazon followed.