Will Apple’s New AI Technology Spark an iPhone Supercycle in 2025? Here’s What to Expect

Apple plans to launch budget-friendly iPhones and new home devices in 2025 and expand its generative AI technology. Business Insider offered insights into Apple’s outlook for the coming year.

According to reports, Gene Munster, co-founder of Deepwater Asset Management, predicts that Apple’s most significant issue in 2025 will be the impact of its new Apple Intelligence on iPhone sales. While Apple has been criticized for lagging in adopting its own AI system, some industry watchers anticipate a potential “supercycle” of iPhone upgrades driven by Apple Intelligence.

Morningstar technology analyst William Kerwin predicted that iPhone sales will be more aggressive in 2025. Wedbush Securities analysts also predicted Apple would ship over 240 million iPhones in 2025, breaking its annual record.

However, experts emphasize that Apple’s priority is integrating its Apple Intelligence across all iPhone models. In particular, Apple must collaborate with local tech firms in China and comply with regulatory requirements to implement AI features in Chinese iPhones. Reports indicate that Apple is negotiating with Chinese tech giants Tencent and ByteDance (TikTok’s parent company) to bring AI-integrated iPhones to the Chinese market.

Another factor to watch is the potential impact of tariff policies under the second Trump administration. With 95% of Apple’s iPhones, AirPods, Macs, and iPads manufactured in China, the company could face significant challenges if Trump’s proposed aggressive tariffs are implemented, potentially leading to retaliatory measures from China.

Meanwhile, Apple is reportedly preparing to unveil the iPhone SE 4 and a next-generation smart home display in the spring of next year, likely around March or April.