The most important day of the year for Apple has arrived. This Monday, September 9, the company’s annual event, chaired by Tim Cook, will take place, in which the latest developments from the technology company will be presented. Named as It’s Glowtime (‘It’s time to shine’), this event, which will start at 7:00 p.m. in Spain, will take place, as usual, at the company’s headquarters in Cupertino (California) and will present the latest developments from the Apple brand. Among these, the launch of the iPhone 16 stands out, the latest model of the famous range of smartphones, although an update of the iWatch and AirPods is also expected.
What’s new in the iPhone 16?
The iPhone 16 will likely feature only minor hardware upgrades. The device will look more or less like the iPhone 15, but with some camera-focused improvements, such as an autofocus button and swipe gestures.
The Pro model, meanwhile, could have a slightly larger display (6.3 inches versus 6.1 inches), with the Pro Max screen size going up to 6.9 inches, compared to 6.7 inches on the iPhone 15.
Additionally, Apple’s new phone is likely to feature thinner bezels and improved processing power, with the A18 chip and 8 gigabytes of memory, to support Apple Intelligence.
It is precisely the new services related to artificial intelligence (AI) that have aroused the most enthusiasm among consumers. Although it is not yet expected to be able to match other major tools, such as ChatGPT, with its new releases Apple will seek to demonstrate that it will also be a major player in generative artificial intelligence.
Still, Apple Intelligence has faced numerous delays, with many key features not expected to arrive until next year.
How can it help boost Apple’s sales?
The new iPhone 16 has the potential to boost stagnant smartphone demand for Apple after nearly three years of near-flat unit sales, largely driven by the need to upgrade devices sold 3 and 4 years ago.
Sales may increase by 5% to about 235 million. The number of older devices will be the biggest driver of sales as Apple Intelligence’s AI toolset will have a bigger impact in 2026.
China is still a mystery for Apple sales as it has the potential to skew the sales figure by 3-5% one way or another, accounting for about 25% of the iPhone installed base.
As in fiscal 2024, we expect higher consumer adoption of the Pro and Pro Max models in fiscal 2025 as these devices have much better features than the base model.
It’s possible that while iPhone unit sales may increase by around 5% next year, sales growth for the Pro models will be around 7-9%. A superior camera on the Pro model is often the catalyst that drives consumers towards this device over the entry-level phone.
How can the launch of the iPhone 16 affect Apple’s stock?
The world’s most valuable company has been in a state of flux over the past few months. In particular, in the first few months of the year it lost 15%, dragged down by weak sales and restrictions in China.
But since the lows in April, Apple has soared more than 40% to reach a new all-time high in July at $236 per share. Apple shares are now trading 7% below these levels, but demand for orders in the days following the presentation could push them back to highs. Even so, we will probably have to wait for the presentations in the coming quarters to see the impact of the iPhone 16 on sales.
Source: XTB Platform
Why is iPhone sales so important?
iPhone sales account for more than half of Apple’s revenue. Despite the new releases, the smartphone market has a decisive weight in the company’s results, especially after the decrease in sales of Mac computers (7.7%) and iPads (7.4%) which, despite remaining relevant, have seen several falls.
Accessories such as the iWatch and AirPods are making up for these falls, which is why the updates that will be presented this afternoon are so important. Regarding watches, an increase in the size of the screen is expected, while headphones are expected to adopt the USB-C charging port, a small speaker in the box to help locate it and noise cancellation.
Source: Departamento de Análisis de XTB
In this scenario, one should not forget the weight of digital revenues, which in recent years has become one of the main sources of growth for Apple. Thus, given the difficulty for its customers to change devices more frequently, Apple’s digital services have become a more recurring and predictable source of income.
Last quarter, Apple’s sales from digital services alone reached $24.2 billion, more than the combined revenues of Adobe, Airbnb, Netflix, Palantir, Spotify, Zoom and Elon Musk’s X.
