Key Takeaways
- Apple’s “It’s Glowtime” event will take place Monday, Sept. 9, with analysts expecting the company to unveil the iPhone 16 supercharged with artificial intelligence (AI).
- Apple is expected to release the iPhone 16, the iPhone 16 Plus, the iPhone 16 Pro, and the iPhone 16 Pro Max, with the new models featuring upgrades to the battery and displays.
- Analysts expect Apple to maintain the pricing it offered when it launched the iPhone 15, though they noted that the AI-capable devices could pose as a “wildcard” for pricing.
- Apple could also unveil next-generation models of its AirPod and Apple Watch offerings.
Apple’s (AAPL) “It’s Glowtime” event is set to take place on Monday, Sept. 9, where the company is expected to unveil the iPhone 16 supercharged with artificial intelligence (AI) capabilities. Investors will also likely be watching for pricing and hardware differences in the new iPhone compared to previous models, and possible next-generation wearable products like AirPods and the Apple Watch.
Apple Intelligence Features
AI-supercharged Siri is likely to be a key focus of the event, with Apple’s announcement for “It’s Glowtime,” displaying the company’s logo in the style of the glowing aura of Apple’s Siri interface.
Apple announced its newest operating system, iOS 18, and Apple Intelligence, at its developer conference in June, where the company said the intelligent system will help Siri understand more natural speech patterns, use personal context from on-device content, and accept typed prompts, among other AI-powered capabilities.
The iPhone maker has also announced a partnership with Microsoft-backed (MSFT) OpenAI to integrate ChatGPT into iOS 18 later this year. Apple Intelligence is expected to roll out after the initial iOS 18 launch, but the company could demo some of the AI features to come at the event, showing investors how the iPhone maker is integrating the technology.
Next-Generation iPhone Upgrades
Apple is expected to release four models of the next-generation iPhone—the iPhone 16, the iPhone 16 Plus, the iPhone 16 Pro, and the iPhone 16 Pro Max. The new models, particularly the Pro models are expected to have significant upgrades to the device hardware including battery life and displays, as well as other features, Bernstein analysts indicated.
Improvements to battery life could be especially appealing to users as AI features require increased computing power. Morgan Stanley analysts said they “believe a strong battery upgrade can help to drive old device refreshes given battery life is one of the key reasons users historically upgrade an iPhone.”
The base iPhone 16 models are expected to have similar designs and display sizes to the iPhone 15, while the Pro models are expected to be larger than their predecessors at 6.3 and 6.9 inches for the 16 Pro and 16 Pro Max, respectively, marking the first size upgrade in several years.
The new iPhones are expected to run on the A18 chip, the next generation of Apple’s silicon chips, which will likely be designed to handle Apple Intelligence workloads.
The new device’s camera will also likely be in focus with CFRA analysts expecting an ultra-wide 48-megapixel camera and potentially a shutter button for capturing photos.
New iPhone Models’ Pricing To Mirror That of Predecessors
The iPhone 16 models are expected to be priced like their iPhone 15 counterparts when they were launched, but analysts noted that AI capabilities could be a “wildcard” in pricing.
Analysts expect the iPhone 16 base model to start at $799 while the lowest storage option of the iPhone 16 Max could cost around $1,199, the same range as the iPhone 15 when it was released around the same time last year.
Morgan Stanley analysts said that while they don’t expect Apple to raise iPhone prices from their levels last year, the possibility of a price increase still exists, though they view potential price hikes as “a net negative for Apple given it would likely drive some upgraders to extend the useful life of their iPhone for another year.”
Possible Next-Gen AirPods and Apple Watches
The iPhone maker could also unveil new additions to its wearable portfolio, with analysts expecting Apple to introduce upgraded versions of the AirPod Pro and AirPod Max with USB-C charging ports.
The company is also expected to overhaul its watch offerings with a new Apple Watch Series 10, an Apple Watch Ultra 3, and a third-gen Apple Watch SE. The new models are likely to feature bigger and thinner displays.
Apple shares have gained close to 15% since the start of the year, at $220.85 as of Wednesday’s close.