Apple’s ‘Glowtime’ event, which showcased the new iPhone 16 and the company’s ambitious Apple Intelligence platform, generated a mix of enthusiasm and skepticism among analysts. While some believe the event represents a significant leap towards an AI-driven future, others expressed reservations about the limited details shared regarding Apple Intelligence and its potential impact on consumer purchasing decisions.
Bank of America’s Wamsi Mohan, reiterating a Buy rating with a $256 price target, highlighted the event’s focus on healthcare features, safety, and convenience. He sees the new devices as a driver for upgrades and attracting new users to the Apple ecosystem. Mohan believes the pricing consistency could incentivize both existing and new users to embrace the enhanced functionality offered by Apple Intelligence.
Needham’s Laura Martin, also holding a Buy rating with a $260 price target, suggested that the event might lead consumers to delay iPhone purchases, with emphasis on features coming ‘later this year’ or ‘early next year.’ She sees potential for increased sales in Apple Watch and AirPods due to their health-focused updates, but anticipates iPhone sales might lag until the iPhone 16 offers more compelling upgrades.
Wedbush’s Dan Ives, who maintained an Outperform rating and raised his price target from $285 to $300, described the iPhone 16 as a potential catalyst for an AI-driven era. He expects it to be the most successful iPhone launch in Apple’s history and sees Apple Intelligence as a crucial factor in the global AI revolution. Ives anticipates increased partnerships in China and believes the new iPhone will drive significant iPhone growth over the next 12-18 months, possibly pushing Apple’s market capitalization to $4 trillion.
Oppenheimer’s Martin Yang, holding an Outperform rating with a $250 price target, found the event more impressive in terms of accessory upgrades than those to the iPhone itself. He pointed to significant hardware redesigns for Apple Watch and AirPods, improving user experience. Yang believes the full rollout of Apple Intelligence in 2025 will accelerate iPhone upgrades.
Piper Sandler’s Matt Farrell, maintaining a Neutral rating with a $225 price target, considered the event largely as expected. He highlighted camera control, stable pricing, and health-focused features as positives but expressed concern about the staggered Apple Intelligence rollout and a lack of detailed use case explanations. Farrell sees the current stock price reflecting the anticipated ‘super cycle’ excitement and believes that the consistent pricing might aid Apple in a potentially weak discretionary spending environment.
KeyBanc’s Brandon Nispel, maintaining a Sector Weight rating without a price target, considered the event lacking in positive surprises and slightly less aggressive promotions from carriers. He expects order volume growth but anticipates less benefit from average sale prices. Nispel sees potential for a positive impact on Apple’s Q4 earnings due to extended pre-order and shipping times compared to the previous year.
Morgan Stanley’s Erik Woodring, reiterating an Overweight rating with a $273 price target, expects pre-orders and lead times for the iPhone 16 to be a key focus following the event. He sees the Apple Intelligence-driven multi-year device upgrade thesis as intact but highlights the timing of Apple Intelligence language expansion as the most important announcement. Woodring adjusted average sale prices for the iPhone, acknowledging that Apple did not eliminate low-end iPhone 16 models as some had anticipated.
JPMorgan’s Samik Chatterjee, reiterating an Overweight rating with a $265 price target, emphasized the broader focus on iPhone features beyond just Apple Intelligence. He sees the key takeaways as Apple Intelligence rollout in October, camera upgrades, and maintained pricing. Chatterjee believes the maintained pricing across all models will broaden Apple’s target audience and make it more competitive against AI smartphones in the market, which often increase prices with the introduction of AI features. He expects order momentum for the iPhone 16 to be the next key catalyst for Apple, but does not see the ‘Glowtime’ event as a positive catalyst in itself.
As of Tuesday, Apple stock was down 1.12% at $218.44, within a 52-week trading range of $164.08 to $237.23. Apple stock has seen a year-to-date gain of 18% in 2024.
