Investing.com -- Apple (NASDAQ:AAPL)'s new iPhone is set to share the spotlight with Apple Intelligence at the tech giant's 'Glowtime' product launch event next week, with many optimistic that the new AI software could provide a catalyst for upgrades, but there's still reason to remain cautious amid regulatory and geopolitical headwinds.
"We believe smartphones supportive of new gen AI capabilities may provide the extra nudge necessary for consumers to justify an upgrade earlier than planned, even in a downbeat economic environment like this one," analysts at Monness, Crespi, Hardt & Co., Inc. said in a note to clients on Friday, ahead of the iPhone maker's event on Sept. 9.
As the iPhone 16 family isn't expected to feature significant hardware changes, the integration of Apple Intelligence could could reignite users of older iPhone models to upgrade, sparking a new iPhone upgrade cycle.
Apple Intelligence is expected to be compatible with all four models of the iPhone 16 family, paving the way for upgrades across the enter iPhone range, but the roll out of Apple's new AI tech may not be immediate.
"Apple Intelligence is expected to arrive with a lag relative to the launch of the iPhone 16 family and the availability of its various features staggered," the analysts noted. They added that the initial release will only be available in U.S. English, with support for other languages planned over the next year.
Despite the clamour for an AI-enhanced iPhone, the analysts remain cautious on Apple stock, citing regulatory headwinds, geopolitical risks, and economic challenges.
Still, Apple's foray into gen AI will be closely watched to see how the tech product trendsetter plans to maintain its "competitive edge in an increasingly saturated smartphone market," they added.