Anyone born between 1997 and 2012 is part of the Gen Z generation. Gen Z is an important consumer demographic and Gen Z buyers have a lot of spending power. They might not be eager to spend their money on the iPhone 16, per the survey findings.
While the iPhone 16 series is rumored to introduce changes such as bigger screens for the Pro models, improved camera hardware for the Pro models, 3nm chips, better battery technology, and a new Capture button, Apple Intelligence is expected to be its main selling point.
CEO Tim Cook is counting on AI features to revive sales, which are currently in decline. Out of 93 percent of Morgan Stanley interns, only 4 percent consider AI-fueled features as a top priority when buying a new phone.
Should Apple be worried about these findings? Analysts don’t think so.
Jacob Bourne, who is a tech analyst at Emarketer, says that AI is a long game, and in the future, the company that makes its offering the most useful will have an edge. Bourne believes that the company “has a huge following of loyalists” who will want to experience Apple Intelligence on their iPhones.
Since Apple Intelligence features will only work on iPhone 15 Pro or higher models, many people will need to upgrade.
Wedbush Securities’ senior analyst Dan Ives has a similar outlook. According to him, Apple doesn’t need Gen Z buyers to fulfill its goal of driving a “golden upgrade cycle.”
According to Wedbush Securities, there are 1.5 billion active iPhones in the world right now. And given that 9 out of 10 Morgan Stanley interns already own an iPhone, it’s clear that the company has a loyal fan base. It might take some getting used to but these loyalists will probably not be able to avoid Apple Intelligence forever.
AI will change the landscape, and Apple has a unique opportunity to own the consumer AI revolution. AI is coming, and this will take some getting used to by Apple consumers.
Dan Ives, Wedbush Securities, August 2024
