new York
CNN
—

Apple CEO Tim Cook said the company’s Apple Intelligence AI tools would “supercharge” the iPhone 16 when he introduced the new device last month. The world is now about to find out for the first time whether the promises of Apple’s artificial intelligence technology are also boosting deflated iPhone sales.

When Apple reports its third-quarter results after Wall Street closes on Thursday, the results will include sales figures from just over two weeks since iPhone 16 pre-orders opened on September 13. (The devices officially landed on shelves on September 20.)

While this is only a tiny portion of what will end up being total iPhone 16 sales, it will provide an important first look at demand for the device that Apple has been I hope I turn around a sales rut ​​lasting several years. Apple’s overall revenue down year over year for four consecutive quarters last year, in part due to weak iPhone demand and widespread economic uncertainty.

After repeatedly failing to give consumers a good reason to upgrade, some analysts felt that Apple Intelligencea software upgrade that inserted The artificial intelligence features found in the iPhone 16 could spur a sales “supercycle” that the company craves. But early analyst estimates before the sell-off last month suggested a slight dull response.

But Apple just this week deployed the first Apple Intelligence features on the iPhone 16, as well as the iPhone 15 Pro models, including new writing tools and the ability to record, transcribe and summarize calls. This means that people who purchased the iPhone 16 in the first month it was on sale didn’t have access to these AI features until recently.

The slow arrival of new capabilities and features – more Apple Intelligence offerings are expected to drop with iOS 18.2 in December – may mean Apple fans haven’t felt a huge sense of urgency to upgrade to the iPhone 16 .

With Thursday’s report, Wall Street investors will be keenly focused on “early indications of the iPhone 16 cycle’s performance,” as well as the company’s fourth-quarter sales forecast, Angelo said CFRA Research analyst Zino in a research note.

Investors will also likely be watching sales figures in China, one of Apple’s most important markets. The iPhone maker slashed prices in China earlier this year amid fierce competition from local rivals, but analysts hope the iPhone 16 could help spark a rebound, despite some obstacles to the deployment of Apple Intelligence features in the region.

Predictions from Wall Street analysts suggest that the iPhone 16 and its AI promise could bring at least a slight increase in sales, but unless Apple beats those projections, it won’t be huge.

Analysts expect Apple to report $45.2 billion in iPhone sales in the quarter, which would represent growth of nearly 3.2% from the same period a year ago. according to FactSet consensus estimates. This figure will also include sales of earlier iPhone models made during the quarter, but could indicate that the iPhone 16 helped increase sales slightly. In the quarter last year when the iPhone 15 was launched, iPhone sales grew about 2.8% year over year.

Quarterly sales from China are expected to reach nearly $16.1 billion, up more than 6% from the same period a year ago.

Overall, analysts expect Apple to post revenue of $94.5 billion, up more than 5% year-over-year, and profit of $24.4 billion .

So most analysts say they’re not too worried if September sales numbers aren’t encouraging. Instead, the most important quarter – as always for Apple – will be the current, holiday quarter.

Wedbush analyst Dan Ives said in a recent note to investors that he estimates that about 300 million iPhones worldwide have not been upgraded in more than four years, adding that ” a monster holiday season (is) likely.”