Apple’s iPhone 16 launch is a big test for consumer AI

Apple (AAPL) will host its annual iPhone launch event on Monday, Sept. 9, at its headquarters in Cupertino, Calif.

CEO Tim Cook is expected to headline the keynote, which will reportedly include the debut of the iPhone 16 lineup, the 10th anniversary edition of the Apple Watch, and updated AirPods.

That’s a lot of hardware, but Wall Street isn’t banking on new iPhones or special edition Apple Watches to move the company’s stock price. Instead, all eyes will be on Apple’s generative AI-powered Apple Intelligence platform.

Apple Intelligence is the company’s big swing at bringing generative AI capabilities to consumers’ iPhones, iPads, and Macs. Wall Street wasn’t very keen on how long it took Apple to announce its AI initiative, waiting impatiently as Microsoft (MSFT) and Google (GOOG, GOOGL) debuted their own AI services for enterprises and consumers.

But investors changed their tune when Apple showed off Apple Intelligence at its WWDC developer conference in June, sending the company’s stock price up around 15% and putting it ahead of Microsoft, Amazon, Tesla, and Google for year-to-date performance.