All new features in Apple's (AAPL.US) latest iPhone 16 series of smartphones are in line with expectations, including A18 and A18 Pro chips using TSM.US's (TSM.US) 3 nanotechnology, Pro and Pro MAX models offering a 0.2-inch, 48-million-pixel width and a phone camera lens, with new shots per click Keys and AI functions. The sales price of the phone is unchanged, but the recycling price is increased to encourage users to upgrade.

The company still believes that Apple Intelligence will be highly differentiated and competitive from Android phones based on a broad user base, self-designed applications and relevant data that models can be used to create highly personalized AI results. But the process of advancing applications is evolving, with the technology needed to build hardware bundles such as high-speed memory and advanced packaging, leading Apple to only gradually roll out AI capabilities in 2026. The bank believes the changeover cycle will accelerate over the next few years, with the market expecting a rebound in iPhone 16 sales, posing short-term pressure on iPhone supply chain stock prices.