Apple shares moved lower today in trading after a top Wall Street analyst issued a downgrade for the tech giant over concerns that its new push into artificial intelligence will be slowed by muted demand for new iPhones, reports The Street.
Some analysts see the new iPhone 16, and next year’s iPhone 17, driving an upgrade supercycle that will boost handset sales and accelerate the use of Apple Intelligence technologies.
However, Jefferies analyst Edison Lee, isn’t one of them, according to The Street. He says near-term expectations for iPhone sales are “too high (and) a lack of material new features and limited AI capabilities mean high market expectations (5%-10% unit growth) are unlikely to be met.”
“We like Apple Intelligence long term, as Apple is the only hardware-software integrated player that can leverage proprietary data to offer low-cost, personalized AI services,” Lee said. “However, smartphone hardware needs rework before being capable of serious AI, likely by 2026/27.”
Apple Intelligence is deeply integrated into iOS 18, iPadOS 18, and macOS Sequoia, harnessing the power of Apple silicon to understand and create language and images, take action across apps, and draw from personal context to simplify and accelerate everyday tasks — all while, per Apple, protecting users’ privacy and security.
