Apple's iPhone 16 Could Trigger A Massive Upgrade Cycle, Says Expert: 'They Have Offered Enough Value'

Author: Benzinga Neuro | September 10, 2024 05:53am

CEO of Creative Strategies, Ben Bajarin, anticipates a significant upgrade cycle for Apple’s newly announced iPhone 16,

What Happened: Bajarin discussed the potential for a supercycle, similar to the one that occurred with previous iPhone releases during CNBC’s “Closing Bell Overtime” on Monday. He pointed out that Apple Inc. (NASDAQ:AAPL) has a large aging installed base, with many users still using four and five-year-old iPhones.

“I think that within the iPhone 16 line, they have offered enough value that I think that’s going to convince a lot of consumers,” Bajarin said. He also noted a shift towards the iPhone Pro in recent years, but believes this might rebalance with the iPhone 16 due to its packed features and aggressive carrier updates.

Bajarin expressed confidence in the strength of the base-level iPhone 16, calling it the “strongest” they’ve launched in some time. He does not foresee a drastic pulling forward of upgrades based on the hardware alone, but predicts a portion of the aging base will upgrade within the next six months.

See Also: Apple’s iPhone 16 Launch Parade On Monday Gets Rained On By Huawei: Chinese Company’s Tri-Fold Phone Gets  Over A Million Orders In Just 7 Hours

Why It Matters: The iPhone 16, introduced at the "Glowtime" event, is designed for Apple Intelligence from the ground up, according to CEO Tim Cook. Among its multiple features, it boasts a faster processor and a dedicated camera button.

However, the new iPhone series has faced some criticism. It failed to impress some Chinese buyers due to its lack of AI features, with the AI software, Apple Intelligence, only set to be available in Chinese language next year.

Furthermore, Apple continues to restrict its eSIM-only iPhone 16 models with 5G mmWave to the U.S. market, maintaining its previous strategy.

Price Action: Apple was trading 1.18% lower at the time of writing in the pre-market on Tuesday, according to Benzinga Pro.

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Photo courtesy: Apple

This story was generated using Benzinga Neuro and edited by Pooja Rajkumari

Posted In: AAPL