Apple’s latest iPhone 16 models are underperforming in sales compared to last year’s versions, despite the company releasing new artificial intelligence (AI) features. A Wall Street analyst, Samik Chatterjee of JPMorgan, attributed the lower sales to low consumer awareness about Apple Intelligence.
Chatterjee noted that a survey from Wave7 Research found that 67% of carrier store representatives believe iPhone users have low awareness of Apple Intelligence. However, he remains optimistic about the company’s prospects, citing a shift towards higher-end models like the iPhone 16 Pro Max as a positive trend.
The analyst rates Apple stock as “overweight” with a price target of $265. Despite this, the stock fell 2.1% to close at $248.05 on Wednesday. Other analysts, including Daiwa Securities, have raised their price targets for Apple stock to $275 and expect AI features to spur iPhone upgrades in the second half of 2025.
Chatterjee’s assessment highlights the ongoing challenge of convincing consumers about the benefits of AI-powered technology from a well-established brand like Apple. However, with new AI features integrated into its devices, Apple is looking to revitalize its sales and stay ahead in the competitive smartphone market.
Source: https://www.investors.com/news/technology/apple-stock-lackluster-iphone-16-sales