iPhone 16 Supercycle ‘Unlikely’ This Year, Despite The AI Boom; Macroeconomic Factors Highlighted As Some Of The Reasons Behind Lowered Momentum

Apple’s ‘It’s Glowtime’ event being held tomorrow will showcase the company’s four new iPhone 16 models, with all of them said to arrive with a slew of impressive upgrades, not to mention every one of them being able to run a combination of cloud-based and on-device generative AI features. Unfortunately, these advantages are not expected to result in a supercycle of the upcoming series, as a new report mentions that there are various factors why this may happen.

The iPhone 17 has a better chance of introducing a supercycle, with the iPhone 16’s lack of design deemed another factor

Despite Apple reportedly increasing its iPhone 16 supply to 90 million units for 2024, surpassing the iPhone 15 tally by 10 percent, Bloomberg’s Mark Gurman says in his latest ‘Power On’ newsletter that a supercycle of the flagship family is unlikely. There are several reasons why this could materialize, one of them related to macroeconomic factors. Gurman points out that consumers in China and other parts of the world are still holding tightly to whatever funds they have, even with AI’s formidable presence in this market.

However, another reason might have to do with the iPhone 16 models themselves. The newsletter states that all of the upcoming models will look nearly identical to their direct predecessors and that the first change that consumers notice is a redesign, which encourages them to make a purchase. While Apple Intelligence can play a pivotal role in becoming a catalyst for increased sales this year, an earlier survey revealed that a competitive price and a robust cooling solution were the top two reasons consumers would upgrade to the iPhone 16.

Also, it is important to note that generative AI features will not be available to iPhone 16 owners as soon as they power on their devices for the first time. In fact, these features are not expected to roll out until iOS 18.1 is officially released. While Gurman may not have a strong enough belief that the iPhone 16 lineup will bring