Citigroup: Apple plans to release iOS 18.2 in December, which is expected to boost iPhone sales

According to Citigroup Research, Apple Inc. (AAPL.US) plans to release iOS 18.2 in December, and its new Apple smart features may determine the speed of the iPhone replacement cycle. While the exact launch date is unknown, MacRumors believes it could be Monday, December 9. Citigroup maintains a buy rating on Apple with a target price of $255. The bank expects the update cycle for the iPhone 17 to boost sales by the end of 2025 and into 2026. The company forecasts sales of 227 million units in 2024, 246 million units in 2025, and 253 million units in 2026. Atif Malik, a Citigroup analyst, stated in an investor report: "Overall, the staggered launch of Apple smart features makes the update cycle for the iPhone 16/17 different from previous cycles. iOS 18.1 was released in late October in the U.S. English version, featuring limited generative AI capabilities. Apple’s AI features will not be available in the EU until April next year, and the company has not announced a launch date in China as it is navigating through regulatory processes." Apple also plans to announce a more conversational and larger language version of Siri sometime in 2025, but it may not be fully launched until 2026. Earlier this year, Apple introduced Apple Intelligence at the developer conference in June and announced the integration of ChatGPT into Siri. ChatGPT will be added to Siri in iOS 18.2. Citigroup's consumer electronics holiday survey shows a slight year-over-year increase in iPhone sales this season, with 48% of consumers preferring iPhones, up from 46% in the previous holiday season. However, among the 2,900 surveyed consumers, only 19% expressed interest in the high-end iPhone 16 model, compared to 21% who preferred the high-end iPhone 15 model in 2023. Malik noted: "Interestingly, compared to last year's iPhone 14, we see increasing interest in the iPhone 15 series this year, which we believe may be due to the availability of Apple smart features on the high-end iPhone 15 model." About 70% of surveyed iPhone users indicated that Apple Intelligence is important when considering the purchase of a new iPhone