Apple iPhone 16 launch: Apple targets iPhone 12 users for trade-in

Apple Intelligence: game-changer behind Apple iPhone 16

The Apple iPhone 16 is packed with new features—improved cameras, longer battery life, and the advanced A18 Apple Silicon chip. However, the real long-term game is the introduction of Apple Intelligence (GenAI) across all new iPhones. While many of these features were previewed at WWDC 2024, Apple has now streamlined their applications for the consumer market.

For U.S. consumers, this means access to tools like creative writing aids, enhanced image search, AI-driven image generation, and notification summaries, all through an upgraded Siri platform. This move hints at a broader ecosystem integration that could reshape how users interact with their devices, content, and apps.

Apple iPhone 12 Users: Key Targets for Upgrades

Apple has its sights set on the Apple iPhone 12 base, with nearly 50 million U.S. users approaching their upgrade window. Apple strategically highlighted the A18 chip’s 60% CPU boost and 2x GPU improvement compared to the Apple iPhone 12, along with enhanced cameras capable of shooting spatial video.

To incentivize upgrades, Apple is offering US$ 800 trade-in credits or Apple iPhone 12 users and US$ 1,000 for Apple iPhone 12 Pro through carrier promotions. Notably, non-carrier trade-in deals saw a reduction, with the N-2 Pro model trade-in value dropping 17% year-over-year to US$ 400. This suggests a clear push for users to go through carriers to maximize trade-in benefits.

Navigating a slow start in 2024

Despite the Apple iPhone 16’s promising features, Apple faced a sluggish H1 2024, with record-low upgrade rates at U.S. carriers in Q1 and Q2. The carrier-focused trade-in promotions aim to stimulate more upgrades in H2, but the overall market remains cautious.

Long-term growth powered by AI

The Apple iPhone 16 is not just about short-term sales but a long-term vision for Apple’s growth through AI. As GenAI continues to evolve, Apple is laying the groundwork for future upgrades that will likely lead to a more dynamic user experience. Additionally, Apple is expanding into health tech with innovations in the hearing aid and sleep apnea sectors, using Apple Intelligence to unlock new opportunities for users to manage their health data.