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iPhone 16 enhances Apple's brand equity, says analyst

Sibahle Malinga
By Sibahle Malinga, ITWeb senior news journalist.
Johannesburg, 10 Sep 2024
Apple has unveiled its flagship smartphone, the iPhone 16.
Apple has unveiled its flagship smartphone, the iPhone 16.

The iPhone 16’s improved performance and intelligent capabilities enhance Apple's brand equity, presenting a compelling case for locals who can afford to upgrade to the latest iOS handset.

This is the word from an industry analyst, unpacking Apple’s latest phone range – the iPhone 16 line-up, consisting of the iPhone 16, iPhone 16 Plus, iPhone 16 Pro and iPhone 16 Pro Max.

Announced yesterday during Apple’s “Glowtime” event, the phone is touted by the US multinational phone maker as the first built for Apple Intelligence, the personal intelligence system that understands personal context, to deliver capabilities that are relevant to users.

Apple Intelligence puts powerful generative artificial intelligence models at the core of iPhone, iPad and Mac devices, and powers new features for users to communicate, work and express themselves, says the company.

According to Apple, the intelligence system will be available as a free software update, with the first set of features rolling out next month in English for most regions around the world.

Apple notes it has designed new A-series chips for the iPhone 16, built on the latest N3E 3-nanometer node, to supercharge power delivery to the CPU.

Arnold Ponela, IDC senior research analyst for mobile technologies and image printing and document solutions for SA and Sub-Saharan Africa, believes iPhone 16’s “significant upgrades” will help it gain momentum locally, reinforcing its reputation for innovation and quality.

“Apple's iPhone 16 range features a larger, stronger display, an improved processor and a new camera control button,” notes Ponela.

“Apple Intelligence further boosts features like upgraded Siri, Memory Movies and notification summary, offering a more advanced user experience than its predecessor. For those looking to upgrade from older devices or switch from other brands, the iPhone 16 presents a compelling case.”

According to Ponela, the advanced features − including the A18 Pro chipset, improved display and enhanced camera capabilities − offer “significant performance gains”.

The iPhone 16 Pro has a 6.3-inch screen.
The iPhone 16 Pro has a 6.3-inch screen.

“With its expanded 6.3-inch screen, the iPhone 16 Pro stands out compared to the 6.1-inch display on the iPhone 15 Pro. These upgrades, alongside Apple Intelligence enhancements, make the device a compelling choice for those seeking the latest in technology and durability,” he adds.

Pre-orders will start from 13 September and general availability from 20 September, with prices starting at $899 (R16 000). The recommended local retail price has not been disclosed yet, but is forecast to be higher.

According to Apple, the device’s intelligence system unlocks new capabilities, including the ability to easily rewrite, proofread and summarise text nearly everywhere the user writes, including Mail, Notes, Pages and third-party apps.

In the Notes and Phone apps, users can also record, transcribe and summarise audio.

Kaiann Drance, Apple VP of worldwide iPhone product marketing, noted during the event last night: “iPhone 16 and iPhone 16 Plus mark the beginning of a new era for iPhone, with Apple Intelligence delivering powerful, personal and private experiences to our users.

“With new ways to capture images using camera control, a 48MP fusion camera with two optical-quality cameras in one, a boost in battery life and efficient performance thanks to the A18 chip, this is the perfect time for customers to upgrade or make the switch to iPhone.”

Arnold Ponela, IDC senior research analyst for mobile technologies and image printing and document solutions for SA and Sub-Saharan Africa.
Arnold Ponela, IDC senior research analyst for mobile technologies and image printing and document solutions for SA and Sub-Saharan Africa.

IDC expects iOS sales to improve over the next year, with 4% year-over-year growth, driven by Apple Intelligence, which is predicted to gain momentum and encourage faster upgrades across the globe.

However, in SA, uptake might be slower, as a result of its hefty price, which is expected to start from around R20 000 to R25 000.

“For many South Africans, the iPhone 16 starting price represents a substantial investment, especially given the country’s average income levels and ongoing economic challenges,” says Ponela.

“This premium pricing may restrict access for the wider population, with affordability largely dependent on higher disposable incomes or financing options. Apple's strategy of positioning its devices as high-end products typically caters to a more affluent market segment, further limiting the broader consumer base's ability to purchase.”

Last week, research firm Trendforce said the overall cost of the new iPhone models has slightly increased due to a significant rise in memory prices over the past year.

However, considering the current downturn in the smartphone industry, Apple is expected to maintain a cautious pricing strategy, it added.

“The USD pricing for the four new models is likely to remain on par with the iPhone 15 series, or see a slight increase to balance higher costs, while driving sales and maintaining profitability.

“The iPhone 16 Pro, featuring a periscope lens, may follow last year's Pro Max strategy by starting with a base storage capacity of 256GB, which could help mitigate the perception of a price increase by offering more storage,” Trendforce pointed out.

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