Apple (AAPL, Financial) might be winning over more users with its new AI features than many thought. According to Morgan Stanley's latest AlphaWise survey, Apple Intelligence adoption in the U.S. is stronger than expected, and users are not only trying it—they're liking it.
In a note to clients Tuesday, analyst Erik Woodring said nearly 80% of eligible U.S. iPhone users have downloaded and used Apple Intelligence over the past six months. Many described it as intuitive, helpful, and something that actually improves their daily phone experience. That's a big shift from earlier skepticism among tech observers.
The survey also found that 42% of users said it's very important for their next iPhone to include Apple Intelligence, and among people thinking about upgrading in the next year, more than half said it's a key feature. On top of that, users said they'd be willing to pay about $9.11 per month for unlimited access, up 11% from the firm's last survey.
Looking ahead, Woodring expects Apple to introduce a thinner iPhone and possibly even a foldable version over the next couple of years—moves he thinks could keep iPhone growth steady. He's sticking with his Overweight rating and $220 price target.
