Citi released a report stating that Apple (AAPL.US) launched iOS 18.2 as expected and maintains an optimistic view on the iPhone 17 update cycle. Apple released iOS 18.2 yesterday (the 11th), which introduced several features of Apple Intelligence, including the long-awaited integration of ChatGPT into Siri and writing tools, Image Paradise, visual intelligence, Genmoji, and the realization of localized English in six countries.

The firm believes that the aforementioned updates generally meet expectations, with the main attraction of Apple Intelligence, namely Siri's personal content, expected to be launched in the spring. In iOS 18.2, some simple tasks that Siri was originally supposed to perform have been outsourced to ChatGPT. The firm believes that Apple Intelligence features will be rolled out in phases, allowing the update cycles for the iPhone 16 and 17 to differ from previous ones. Apple Intelligence is not expected to launch in the EU before April next year, and the China market is still pending, as the company is dealing with regulatory processes. Additionally, it is anticipated that Apple will launch a more natural conversational 'LLM Siri' in 2025 alongside iOS 19, with plans for promotion in 2026.

The firm maintains an optimistic view on the iPhone 17 update cycle and keeps its iPhone shipment forecasts for 2024-26 at 0.227 billion, 0.246 billion, and 0.253 billion units, representing a year-on-year decline of 2%, a recovery of 8%, and a further increase of 3%, maintaining its 'Buy' rating with a target price of $255.