The launch of the Apple iPhone 16 this week with artificial intelligence (AI) capability, coupled with a stronger baht, is expected to accelerate the upgrade cycle for iPhone users, say analysts and retailers.
In Thailand, Apple will start taking pre-orders for the devices from Sept 13. The phones will be available for purchase from Sept 20. Most models have been priced between 2,000 and 3,000 baht less than comparable iPhone 15 models, reflecting the weakening of the dollar against the Thai currency.
The iPhone 16 model with a 6.1-inch display starts at 29,900 baht, the iPhone 16 Plus with 6.7-inch display costs 34,900 baht, the iPhone 16 Pro with 6.3-inch display costs 39,900 baht and the iPhone 16 Pro Max with 6.9-inch display is 48,900 baht.
The Apple website does not mention when the much-touted Apple Intelligence tools will support the Thai language, but analysts and retailers note the country is considered a first-tier market.
The tools have been launched in US English, and will be followed by localised English in December, then Chinese, French, Japanese and Spanish next year.
With the baht in the range of 33 to the US dollar this year compared with 36 baht last year, the new device has a more attractive price tag, which could drive growth in premium segment during the last quarter this year, say analysts.
The Samsung S25 will be launched in January, which should also spur smartphone demand in the first quarter next year, said Dusit Sukhumvitaya, chief executive of the mobile phone distributor Jaymart Mobile Co Ltd.
The iPhone 16 will be 3,000 baht cheaper than last year’s model, while the iPhone Pro Max with 512 gigabytes of storage capacity will be 1,000 baht cheaper than the previous model, he said.
Compared with the adoption rates from the iPhone 10 to 11 and iPhone 14 to 15, this price adjustment is expected to spur a wider replacement rate among buyers, said Mr Dusit. Roughly 30-35% of Jaymart’s iPhone users upgrade their phones with every iteration.
The Apple Intelligence tools will also stimulate demand from early adopters, and he said he expects Thai language support to arrive next year.
Apirat Ratanavichit, a market analyst for IDC Asia/Pacific, said the lower prices should increase demand for standard iPhones in Thailand, raising their share among total iPhone shipments compared with the flagship Pro Max model.
Mr Apirat said the new camera control button is an example of Apple’s effective integration of hardware and software in the new iPhones, which should bolster the company’s market position.
Meanwhile, Apple Intelligence ensures privacy and security through the Private Cloud Compute system, he said.
A number of users may see the device as future-proof and could be willing to upgrade for the new camera features and other upgrades, said Mr Apirat.
IDC forecasts growth of 4% year-on-year in 2025 for iOS operating systems globally.
“Maintaining the launch price as well as expanding trade-in programmes and financing options will be key to driving sales of iPhone 16 in Southeast Asia,” Chiew Le Xuan, analyst of Canalys, told the Bangkok Post.
Collaborating with carriers on device bundling is also crucial to making Apple products more affordable for consumers, he said.
The hardware upgrades in the new iPhones are designed to meet the increasing demands of Apple Intelligence, especially with AI workloads that require substantial memory for processing large language models.
However, the delayed rollout of Apple Intelligence could negatively affect iPhone sales in the second half of 2024, said Mr Chiew.
Apple faces challenges with the global rollout of Apple Intelligence, which has led to delays worldwide. Considering these obstacles, it is likely additional resources will be needed to localise for the Thai market, he said.
“Given Thailand’s importance as a key market in the region, I anticipate this localisation effort will happen in the near future,” said Mr Chiew.
He said while the addition of the capture button on the iPhone’s camera may seem gimmicky, it could prove significant in the long run. The feature aligns with Apple’s ongoing integration of AI, particularly in its visual intelligence capabilities, said Mr Chiew.
With content creation and social media usage surging in the region, the new button has the potential to elevate iPhone’s already strong reputation in photography, making it even more appealing to consumers, he said.
Another highlight is Apple’s integration of AirPods and Apple Watch for unified hearing, said Mr Chiew, aiming for deeper synergy among products.
This opens up possibilities for personalisation and advanced features driven by Apple Intelligence, he said.