Apple Intelligence Launch: What to Expect

Meritz Securities has predicted that Apple’s launch of Apple Intelligence will proceed as scheduled, but the freeze on new product prices is noteworthy.

Key Features of iPhone 16

Yang Seung-soo, a researcher at Meritz Securities, highlighted the biggest features of this year’s iPhone 16, including the inclusion of Apple Intelligence and the frozen launch price in dollar terms. He also emphasized the improved camera-related specifications, such as the inclusion of a 16 Pro folded zoom.

Apple Intelligence: A Beta Version First

Apple Intelligence is expected to be applied as a beta version first through software updates starting in October after its release as expected by the market. Functionally, it presented Siri integrated with Chat GPT, test correction and summary, and phone recording and summary, with no significant difference from the announcement at the Worldwide Developers Conference (WWDC) in June of this year.

Language Support and Sales Factor

However, it was shared with the market that support for other languages, including Chinese, French, Japanese, and Spanish, will begin next year, excluding English. This may delay Apple Intelligence becoming a meaningful sales factor in the global market.

Launch Price and Sales Expectations

Researcher Yang said, “The iPhone’s launch price broke expectations and was set at the same price as its predecessor. We believe that this is largely due to the increased build-up inventory compared to the predecessor and the deepening sluggish global set demand.” He added, “From the perspective of the domestic value chain, it is positive in that it increases the possibility of brisk pre-order sales.”

Stock Price Trends and Recommendations

Yang explained, “Except for 2020, when external variables due to COVID-19 had a strong impact after the launch of the iPhone, the stock prices of Apple and domestic parts companies have followed the sales trend.” He continued, “We estimate that the main component orders for the iPhone 16 in the second half of the year will be 90 million units, an increase of about 6% compared to the previous model’s 85 million units.” He added, “Amid the recent downward trend in the index, the domestic Apple value chain stock price has returned to the lower end of the valuation level ahead of the Unpacked event. In the short term, we recommend using the pre-order period as a short-term buying (trading-buy) opportunity.”