Morgan Stanleybelieves the iPhone SE 4 will be the key to Apple Intelligence’s success, not the iPhone 16 series.
While the iPhone 16 Pro and iPhone 16 Pro Max seem to be selling better than expected, Morgan Stanley, a leading investment bank, has indicated that the iPhone SE 4, slated for a 2025 release, will be the real driver of AppleIntelligence adoption.
The bank previously predicted that iPhone 16 sales would fall short of expectations. However, recent data suggests that delivery times for the iPhone 16 Pro and Pro Max models are shortening, indicating stronger demand. This is attributed toimproved supply conditions, according to Morgan Stanley.
Despite the positive signs for the iPhone 16 Pro models, the bank remains bullish on the iPhone SE 4. Morgan Stanley’s own supply chain checks show no change in orders foriPhone 16 models. However, the increasingly strong signals point towards a mass rollout of the iPhone SE 4 in 2025.
Apple Intelligence Integration: A Game Changer for the iPhone SE 4
The key to the iPhone SE 4’s success, according to MorganStanley, lies in its expected integration of Apple Intelligence. This feature, which is not yet available on most iPhones, will make the SE 4 more attractive than most traditional iPhones that don’t support Apple Intelligence technology and/or are priced higher.
The bank believes the iPhone SE 4 will be Apple’sentry point into the lower-end smartphone market, a segment they have previously targeted with the iPhone SE series. Morgan Stanley has revised its production and sales estimates for the iPhone SE 4 from 15 million units to a range of 15-20 million units, depending on the inclusion of Apple Intelligence.
The Future of Apple Intelligence
The iPhone SE 4’s potential success hinges on the integration of Apple Intelligence. If the rumors are true, the device could become a game changer for Apple’s AI ambitions, driving adoption and opening up new possibilities for the technology.
References:
*Morgan Stanley Research Note (Date: October 16, 2024)
* CNBeta (Date: October 16, 2024)
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