Apple had been counting on new artificial intelligence features to make the iPhone 16 a major hit. But pre–sale estimates point to a more muted early response than Apple had hoped.

Apple announced its new iPhone 16 series smartphones last month. The devices have been on sale for a while now, but they come with one of their main selling points, AI. Apple Intelligence is coming this month,

Recently, Apple unveiled its latest phone, the iPhone 16. While it will provide users with a phone that is ready for artificial intelligence (AI) features, it may not be all that exciting. But looks can be deceiving, and early accounts are that the new iPhone is doing just fine. Here's why it could be a big growth catalyst for the business.

Investment bank JP Morgan analysts say that Apple Intelligence is not yet drawing iPhone users to upgrade, and demand for iPhone 16 Pro models is weaker than it was with the iPhone 15 Pro range.

Despite mixed iPhone 16 pre-sale estimates, Apple’s stock surged 2.3% as analysts note improved availability and lead times. AAPL is up 21% year to date, with a strong holiday season expected.

Apple iPhone 16 is the most affordable iPhone to offer Apple Intelligence, though the features will continue to roll out into early 2025.