Apple<\/a> entered the AI<\/a> game last month with Apple Intelligence, a suite of new features designed to bring AI straight to iPhone<\/a>, iPad<\/a>, and Mac<\/a> screens. Apple’s AI has a catch<\/a> though: it only works on the newest iPhones and it could be the reason why millions of iPhone users with older models seriously think about upgrading, say Morgan Stanley analysts.<\/p>\n Morgan Stanley analysts named Apple a top-pick stock on Monday, after which Apple shares jumped to an all-time high, per Bloomberg<\/a>. Apple Intelligence is a “clear catalyst” for iPhone upgrades and will enable Apple to sell nearly half a billion iPhones in the next two years, analyst Eric Woodring stated.<\/p>\n Apple Intelligence is expected<\/a> to come out this fall for the iPhone 15 Pro and 15 Pro Max \u2014 older iPhones will not have access to Apple’s AI. The update offers AI-generated emojis, a smarter Siri, and direct access to ChatGPT<\/a>, though some anticipated Siri AI upgrades<\/a> may arrive next year.<\/p>\n Related: <\/b>Apple Is Expanding What The iPhone Can Do. Here’s What’s Changing Right Away.<\/b><\/a><\/p>\n “We believe that there is record level of pent-up demand entering the iPhone 16 cycle later this year,” Woodring noted, adding that Apple Intelligence delivers “unique-to-the-Apple-ecosystem” value.<\/p>\n Morgan Stanley previously forecasted<\/a> that Apple would sell around 230 million iPhones in the same time frame, making the new prediction more than double the previous one.<\/p>\n Apple is also uniquely positioned to be the AI “base camp” for its customers, “just as it has done for digital content (iPod) and social media (iPhone),” wrote<\/a> Morgan Stanley analyst Ananda Baruah.<\/p>\n Other analysts at different firms have made similar predictions. Wedbush Securities analyst Dan Ives told Reuters<\/a> in June that more than 15% of existing iPhone users could buy the new iPhone Apple is expected to release this fall.<\/p>\n Related: <\/b>Apple Labels These 3 Iconic Products ‘Vintage,’ and Soon-to-Be ‘Obsolete’<\/b><\/a><\/p>\n Ives estimated that 270 million iPhone users have not bought a new model in the past four years.<\/p>\n More than half<\/a> of Apple’s overall revenue in the second quarter of 2024 came from iPhones; Apple has the majority<\/a> of the market share for smartphones in the U.S.<\/p>\n At the time of writing, Apple was the largest company in the world with a $3.584 trillion<\/a> market cap. Microsoft<\/a>, Nvidia<\/a>, Google<\/a>, and Amazon<\/a> followed.<\/p>\n![\"\"](\"https:\/\/assets.entrepreneur.com\/images\/misc\/1721072576_Tim-Cook-GettyImages-1169791934.jpg?width=1000\")
Apple CEO Tim Cook waves to customers before they enter Apple’s 5th Avenue store. (Photo by Drew Angerer\/Getty Images)<\/sup><\/i><\/p>\n