While the upcoming iPhone 16 launch on Monday may not send Apple’s stock soaring immediately, tech expert Gene Munster believes the new phone’s AI features will fuel significant growth for the tech giant in the next year.
Munster, managing partner at Deepwater Asset Management, anticipates the initial announcement to be met with a sense of disappointment. “I think the announcement is typically going to be a disappointment,” he told Benzinga. “I don’t expect it to trade up on the event.”
However, he predicts a surge in Apple’s stock following the company’s third-quarter earnings report in late October. By then, consumers and investors will have had time to explore the iPhone’s AI features. “I think they’re really gonna catch on,” Munster said. “Once that starts happening into next year, that’s when the excitement really goes, but this is going to be the disappointment before the excitement. I think this year is really going to be a great 12 months for Apple.”
Munster expects iPhone sales to grow as much as 15% next year, exceeding Wall Street projections of 7%. He believes the iPhone 16’s AI capabilities will convince around 10% of iPhone users who were planning to upgrade in 2026 to upgrade next year. “I think it’s conservative to say 10% because there’s a group that’s just going upgrade this year because it’s time. Their phone is five years old they’re just gonna get a new phone.”
Munster emphasizes that the new AI features have the potential to significantly impact Apple’s revenue growth. He draws a parallel to the iPhone 6 launch 10 years ago, which saw a 52% increase in sales due to its larger screen. “Small changes to features can have big impact to growth,” he said. “That’s the key question. Do you think these features are going to spur big upgrade cycle?”
Apple’s stock (AAPL) closed down 2.72% on Tuesday, finishing at $222.77.
While the iPhone 16 launch might not cause immediate fireworks for Apple’s stock, Munster’s prediction of strong AI-driven growth in the coming year paints a promising picture for the tech giant’s future.
