iPhone 16 and the market

Not all iPhone launches are met with stock market enthusiasm. But I think this one will be because of the potential big wave of upgrades as the higher end consumer market is ripe for embracing AI to enhance their day-to-day life.

At the end of the day, Apple is trading on high valuation at the moment, so a downward adjustment at some point is inevitable. With the current macroeconomics (recessionary pressure, lacklustre job market) and global market dynamics (Huawei's AI for the Chinese market, inter-countries conflicts, protectionism/ nationalism trends), it doesn't help Apple's case in the medium term.

Fundamentally, Apple has a solid profit margin and financial performance that gives it a competitive edge over many companies. There is also no Apple replacement in sight yet for Apple users to switch to. In fact, it might get new users from other brands if they can continue to be the most innovative product in it's category out there.