iPhone 16: Apple unveils its new core?

Hey Superheroes,

Markets have been volatile this month.

Another mixed message – a fall in the US job finding rate and a Presidential Election looming in November, are keeping Wall Street on its toes. A popular gauge of this sentiment is the CBOE Volatility Index (VIX), it surged to 65 at the start of August before coming back down. It’s been hovering at around 20 this week against the 2024 average of 14.8. According to data from Bank of America (NYSE:BAC) there is heightened volatility in the months from July leading to an election. This is being amplified by current recession fears and expectations of an interest rate cut by the Federal Reserve Bank, who is meeting next week.

The local ASX has rebounded back above the 8,000 point mark with the Australian share market recording its best session in almost three weeks. The catalyst was uranium stocks that surged following comments from Russian President Vladmir Putin suggesting that Moscow would consider limiting exports of key metals.

With all that it looks like a busy run from now until Christmas.

But let’s take it a week at a time.

Apple launches the AI-enabled iPhone 16 smartphone series and the market says “ok”

Apple Inc. (NASDAQ: AAPL) shareholders have seen the prices of their shares increase almost 20% for the year, narrowly beating the NASDAQ index. But as attention turned to the company’s annual launch event in Cupertino, both shareholders and shoppers were likely more curious about how the latest iteration of the iPhone improves upon previous models.

At first glance, the iPhone 16 appears almost identical to its predecessor, the iPhone 15. However, it’s worth remembering the saying, ‘don’t judge a book by its cover.’ The real innovation lies within, featuring what Apple calls ‘Apple Intelligence,’ their version of AI.

🔮 Spoiler alert

The launch event, called “Glowtime”, was thought to reference the “glowing effect” Siri will have on the new Iphones. In fact, some analysts suggest that an iPhone 16, deeply enhanced with AI, could usher in a “golden upgrade cycle” for Apple, having estimated that 270 million iPhone users have not upgraded their handsets in over four years.

Highlighting new product features, from the way Apple Intelligence is woven into the user experience, to camera control which allows users to quickly launch the camera application, Apple CEO Tim Cook expressed that the latest iPhone “raises the bar for what an iPhone can do.”

While true, many who tuned into the unveiling weren’t completely surprised. Leaks had been circulating on the internet for some time, revealing details about the new product’s capabilities.

Although Apple shares dropped 1% after the event, the company has demonstrated stronger year-on-year sales figures. It’s also important to note that investors will be focused on how the new iPhone models will impact demand moving forward.

✨So, what’s actually new?

Artificial Intelligence is at the heart of Apple’s new flagship. 

The new 16 models are outfitted with the A18 and A18 Pro chips, perhaps needed to handle the AI-related tasks and features under the Apple Intelligence umbrella.

Apple Intelligence powers new features that will roll out gradually, with the first batch scheduled for December. The new devices will include features such as writing tools, image creation, a ‘new era for Siri,’ and ChatGPT integration. Additionally, they will feature a new camera control button and AI-powered capabilities to remove objects from photos.

❗A wild Huawei has appeared!

Just hours after the new iPhone release, Huawei, the privately-owned ICT, infrastructure and smart devices company, unveiled its Mate XT Ultimate Design, a–wait-for-it tri-fold phone. The phone, set to sell at US$2,800 will be the first-ever triple-foldable phone in stores. 

According to Huawei, the device has already received over 4 million pre-orders since September 7. Although the price tag is somewhat prohibitive, the phone will initially be available only in China, where Huawei is hoping to capitalise on the absence of Apple Intelligence in the market, which is expected to launch there only next year.

🔦  Some other things we’re shining the Spotlight on:

OIL TAKES A DIP: The price of Brent crude oil has fallen below US$70 per barrel for the first time in almost three years. This week, the International Energy Agency cut its 2024 oil demand growth forecast citing a “rapidly slowing” Chinese economy. This slowdown has seen the country’s oil consumption declining for a fourth consecutive month.

DATA CENTRE RACES: Following Blackstone’s A$24 billion purchase of AirTrunk, data centre owner and operator Next DC (ASX:NXT) has launched a debt syndication worth A$2.9 billion to expand in the Asia-Pacific region. This follows another A$750 million in raised capital announced earlier in the week.

OPTIMISM FOR AUSTRALIAN LITHIUM: This week, analysts have reported that Chinese electric vehicle battery maker Contemporary Amperex Technology (CATL) announced the suspension of its lithium operations. Analysts noted this cut to Chinese supply creates an opportunity for other producers, especially those listed on the ASX as their stocks rose an average of 11% on Wednesday against significant losses averaging 67.5% over the past twelve months.

Keep up to date on the markets by following us on Instagram, @superheroau!