24/7 Wall St. Insights
- There are several reasons people might upgrade to the latest iPhone.
- One Apple Inc. (NASDAQ: AAPL) analyst predicts a “monster holiday season” for the company.
- Also: Dividend legends to hold forever.
There are several reasons people might upgrade to the Apple Inc. (NASDAQ: AAPL) iPhone 16. One is the iOS 18.1 software. It has the Apple Intelligence package, Apple’s flagship artificial intelligence (AI) software product. However, this works on some iPhone 15 models. The iPhone 16 has an upgraded camera, which every generation of the phone has. It has a faster chip, which is not helpful for people who use relatively few functions. The trigger for tens of millions of upgrades is that 300 million people have an iPhone that has not been upgraded in over four years.
Wedbush analyst Dan Ives says the 300 million older iPhones means “a monster holiday season (is) likely on deck.” His argument is a theory but a believable one.
Apple needs good fourth-quarter revenue, particularly from its smartphone, to keep its stock rising. Its shares are up only 16% this year, compared to 21% for the S&P 500, and are poor compared to stocks of other massive tech companies. Meta Platforms Inc. (NASDAQ: META), for example, is up 60% for the period.
Apple’s iPhone figures for the most recently reported quarter were mediocre. Apple’s overall revenue rose 6% to $94.9 billion. iPhone revenue also rose modestly from $43.8 billion to $46.2 billion. The quarter would have been weak if the Services revenue had not jumped from $22.3 billion to $25.0 billion.
People may upgrade to the iPhone 16 because of new AI features. However, people who have versions older than four years own an iPhone 12 or an older version. An upgrade in features since that model’s release would be a smartphone with much more advanced technology.
Apple Stock Price Prediction and Forecast 2025-2030
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