What Impact Will Apple's 'It's Glowtime' Event Have on Its Financial Performance?

The iPhone 16, which Apple is set to introduce at the fall event, is expected to feature an advanced artificial intelligence technology called Apple Intelligence, which will be the star of the show. "Glowtime" is almost certainly referring to the new Siri interface in iOS 18.

The introduction of Apple Intelligence is expected to bring significant performance improvements by being integrated into the iPhone 16. To support this AI feature, the iPhone 16 may increase the capacity of DRAM and significantly upgrade the performance of the System on a Chip (SoC). These enhancements will make the iPhone 16 more efficient in handling complex AI tasks and may also bring new user interfaces and interactive experiences.

Although the launch of Apple Intelligence features will be staggered this fall, the more Apple showcases Apple Intelligence capabilities on the new iPhone 16 with 8GB of DRAM and a more powerful processor, the more likely consumers are to associate Apple Intelligence with the purchase of a new iPhone. They are more likely to consider these smart features as reasons to buy a new device.

I have high expectations for this iPhone replacement cycle, which could be one of the largest upgrade cycles in Apple's history. The addition of AI technology will not only enhance the user experience but may also have a positive impact on Apple's financial performance. In terms of pricing, it is speculated that the iPhone 16 will maintain the same pricing as last year, but Apple may discontinue the 128GB iPhone 16 Pro model, thereby driving the Average Selling Price (ASP) to increase by 5% in the fiscal year 2025.