The iPhone 16 has apparently already been written off by a large portion of consumers

Apple Intelligence alone will not be enough to convince Generation Z consumers to buy the iPhone 16, a survey of 575 Morgan Stanley interns found.

Anyone born between 1997 and 2012 is part of Generation Z. Generation Z is an important consumer demographic and Generation Z shoppers have high purchasing power. They may not be eager to spend their money on the iPhone16according to the results of the survey.

While the iPhone16 The series is rumored to introduce changes such as larger screens for the Pro models, improved camera hardware for the Pro models, 3nm chips, better battery technology, and a new record button; Apple Intelligence is likely to be the main selling point.

CEO Tim Cook hopes AI features will boost currently declining sales. Of 93 percent of Morgan Stanley interns, only 4 percent consider AI-powered features to be their top priority when purchasing a new phone.

Should Apple be concerned about these results? Analysts don't think so.

Jacob Bourne, a tech analyst at Emarketer, says AI is a long-term game and that in the future, the company that makes its offering the most useful will come out on top. Bourne believes the company has “a huge following of loyalists” who want to experience Apple intelligence on their iPhones.

Since Apple Intelligence features only work on the iPhone 15 Pro or later models, an upgrade is necessary for many people.

Dan Ives, senior analyst at Wedbush Securities, takes a similar view. According to him, Apple does not need Gen Z buyers to achieve its goal of a “golden upgrade cycle.”

According to Wedbush Securities, there are currently 1.5 billion active iPhones worldwide. And with 9 out of 10 Morgan Stanley interns already owning an iPhone, it's clear the company has a loyal fan base. It might take some getting used to, but those loyalists probably won't be able to avoid Apple Intelligence forever.

Dan Ives, Wedbush Securities, August 2024