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iPhone 16 price increases could subdue an Apple Intelligence super-cycle

Investment firm Piper Sandler believes Apple Intelligence will not boost iPhone 16 sales at first, and an expected price hike may impact demand.

Two smartphones, one showing a triple camera setup and the other displaying a vibrant red and yellow screen, showcased against a dark background.
Renders of a possible designs for the iPhone 16 range

In July 2024, Piper Sandler raised its Apple target price to $225 specifically because of Apple Intelligence. Ahead of the iPhone 16 launch, the company still believes that Apple Intelligence will be key — but not immediately.

That’s because the features of Apple Intelligence will launch later in the year, rather than coming out alongside the iPhone 16 range. Then, too, the company says that it wants to see Apple do more to market the benefits of Apple Intelligence, given “the lack of a killer consumer AI app” to date.

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