After Apple announced its latest quarter earnings, AAPL shares dropped 2% after hours. It was a good sign that investors don't expect the iPhone 16 or Apple Intelligence to be big drivers for Apple in the near term.
In a new research note from Haitong International Securities analyst Jeff Pu, the analyst believes Apple's iPhone 16 will have an inevitable soft cycle in the coming quarters, as he expects Apple to sell fewer iPhone models in 2H24.
However, this could lead to a strong cycle with the iPhone 17, which will be released next year. According to Pu, Apple Intelligence and a new hardware design could lead to better iPhone 17 sales. In addition, he expects Apple to use its own cellular modem with the iPhone SE 4, followed by a proprietary Wi-Fi 7 chip in the iPhone 17 next year.
We also heard the same prediction from top insider Ming-Chi Kuo. Yesterday, the analyst wrote that Apple wants to reduce its reliance on Broadcom by moving to its own proprietary Wi-Fi and Bluetooth radios.
That being said, analyst Jeff Pu also gives an interesting tidbit about Apple's growing Service business. He expects it to grow thanks to upcoming Apple Intelligence features that might become paid in the mid-to-long term.
Bloomberg's Mark Gurman has previously raised this possibility, even though Apple is currently focusing on delivering the promised schedule unveiled during WWDC 2024. If everything goes according to the plan, Apple will finish delivering these promises a little before WWDC 2025, when Siri finally understands context and is able to control the iPhone.
What to expect from the iPhone 17
Rumors so far say Apple has an ambitious plan for the iPhone 17. Despite a redesign for the Pro models with a narrower Dynamic Island, the company will also upgrade the front-facing camera with a 24MP sensor and a telephoto lens with 48MP.
Besides, Apple is working on an iPhone 17 Air-like device to replace the current iPhone Plus model. If the plan works out, this new version will have an ultrathin design, even though it won't feature the company's top specs.
You can learn more about iPhone 17's latest rumors below.
The post iPhone 17 redesign and AI could lead to a massive sales boost for Apple appeared first on BGR.
Today's Top Deals
- Today’s deals: Rare Nintendo Switch sale, $729 black Apple Watch Ultra 2, 32% off LG G4 OLED TV, more
- Today’s deals: $56 for 2024’s easiest Halloween costume, $699 M2 MacBook Air, 20% off Dyson, more
- Today’s deals: $199 iPad, Shark air purifiers with 5-year HEPA filters, $60 Ring Battery Doorbell, more
- Today’s deals: Free Echo Pop & Amazon Smart Plug, $30 Philips OneBlade 360, $38 Sony headphones, more