Apple’s iPhone 16 Release: A Lukewarm Response from Wall Street
Apple’s stock price has been on the rise since the announcement of its new iPhone products, which will include artificial intelligence (AI) functions. However, with the iPhone 16 release just around the corner, Wall Street’s response remains lukewarm. According to the financial investment industry, Apple’s stock price closed at $220.82, down 0.70% on the New York Stock Exchange.
The iPhone 16, scheduled for release on the 9th, is expected to be equipped with a new operating system, ‘iOS 18’, which includes Apple’s own AI, ‘Apple Intelligence’. While there are high expectations in the market that Apple’s first AI phone will stimulate replacement demand from existing users, some analysts are cautious in their predictions.
Analysts’ Predictions: A Neutral Outlook
David Borg, an analyst at UBS, stated that while Apple will emphasize the AI features applied to the new iPhone, sales are not expected to increase rapidly due to competition in China. Moffett Nathanson, a Wall Street independent research firm, analyzed that the expected benefits from AI were already reflected in Apple’s stock price, giving a neutral investment opinion and a target price of $211.
Goldman Sachs evaluated Apple’s iPhone 16 launch as positive news, but judged that it would be difficult for the stock price to rise this month. Historically, September has been the month with the lowest return in a year for Apple’s stock price, with an average decline of 3.5%. Michael Enge, a Goldman Sachs analyst, noted that even with the iPhone 16 release, it will not have a significant impact on Apple’s stock price.
The Impact of AI on Apple’s Stock Price
The inclusion of AI functions in the new iPhone products has been a major factor in Apple’s stock price rise. However, the market is still uncertain about the extent to which AI services based on ChatGPT will be provided on the iPhone 16. Apple is said to be looking for a local partner to replace OpenAI, which developed ChatGPT.
As the iPhone 16 release approaches, investors will be watching closely to see how the market responds to Apple’s new AI-powered device. While some analysts are cautious in their predictions, others see the potential for the iPhone 16 to stimulate replacement demand and drive sales.
