According to Citi Research, Apple Inc. (AAPL, Financial) is planning to release iOS 18.2 in December, introducing new smart features that may impact the iPhone replacement cycle. While the exact launch date is unclear, sources speculate it could be December 9.
Citi maintains a buy rating on Apple with a target price of $255. The bank anticipates that iPhone 17 updates will boost sales by the end of 2025 and into 2026. It forecasts iPhone sales of 227 million units in 2024, 246 million in 2025, and 253 million in 2026.
Analysts note that the staggered release of Apple's intelligent features differentiates the iPhone 16/17 upgrade cycle from previous ones. The iOS 18.1 version, launched in late October, includes limited generative AI features and is only available in U.S. English. Apple's AI features are expected to reach the EU by April next year, with no current release date announced for China due to ongoing regulatory processes.
Apple also plans to announce an upgraded Siri with larger language capabilities in 2025, with full availability expected in 2026. Earlier in the year, Apple introduced Apple Intelligence at its developer conference, revealing plans to integrate ChatGPT into Siri, which will debut with iOS 18.2.
Citi's holiday consumer electronics survey indicates a minor increase in iPhone sales, with 48% of consumers favoring iPhones compared to 46% the previous year. However, interest in the high-end iPhone 16 models has dipped slightly, with only 19% of respondents interested, down from 21% for the iPhone 15.
