Apple's highly anticipated iPhone 16 series, launched during the Glowtime event, is expected to generate significant interest among consumers looking to upgrade from older models, particularly due to the introduction of Apple Intelligence. However, despite this interest, market experts believe that the lack of immediate demand for generative AI features among consumers may prevent Apple from experiencing a major upgrade cycle globally.
iPhone 16 Series Launch and Features
Unveiled on Monday, the iPhone 16 series comprises four models, all powered by Apple Intelligence, a new AI-driven feature that utilizes Apple silicon and generative models. This new technology enables iPhones to understand and create language and images, perform tasks across various apps, and streamline daily activities. According to Apple CEO Tim Cook, the iPhone 16 series has been designed from the ground up with these advanced features to enhance user experience.
Market Impact in India
Industry experts project that Apple will ship around 12.5 to 13 million iPhones in India in 2024, potentially helping the company achieve over 8% market share in the country. The iPhone 16 series launch is also expected to solidify Apple's position in the premium smartphone segment, with average selling prices (ASP) nearly three times the market average.
Navkendar Singh, associate vice president at IDC India, noted that the inclusion of Apple Intelligence will encourage many users of older models like the iPhone 12, 13, and 14 to upgrade. This feature allows Apple to keep pace with AI-driven offerings from competitors like Samsung's Galaxy lineup.
Pricing and Consumer Appeal
In India, the prices of the iPhone 16 series remain unchanged from previous models. The base iPhone 16 starts at Rs 79,900, while the iPhone 16 Plus is priced at Rs 89,900. The higher-end iPhone 16 Pro and Pro Max are available at Rs 1,19,900 and Rs 1,49,900, respectively.
Prabhu Ram, head of the industry intelligence group at Cybermedia Research (CMR), highlighted that the more accessible pricing of the iPhone 16 Pro series is likely to drive consumer upgrades, appealing to a wider range of Indian customers. This strategic pricing may help Apple capture a significant share of the premium smartphone market by the end of 2024.
Generative AI Features
Although the launch of Apple Intelligence has generated excitement, analysts caution that it may not trigger a massive wave of upgrades in the near future. Varun Mishra, senior analyst at Counterpoint Research, explained that the current generative AI features offered by Apple may not be compelling enough for users to upgrade immediately. Additionally, the rollout of these AI features is expected to be gradual, with their full impact being seen over time.
Despite this, IDC’s Singh believes Apple’s strong storytelling abilities will effectively communicate the benefits of generative AI to consumers, potentially enhancing the adoption of these new technologies.
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