Apple, Inc. (NASDAQ:AAPL) iPhone 16 unveiled at the Glowtime event last week did not live up to the hype but it made up for some of the disappointment with its hearing aid and health upgrades, said Bloomberg’s Mark Gurman on Sunday.

Why iPhone 16 Disappointed: The iPhone upgrade was mostly about “refining device’s nuts and bolts” rather than introducing exciting or new features, said Gurman in the latest instalment of his Power On newsletter.

Among the changes to the iPhone were the addition of a dedicated hardware button to take pictures and video, redesigned interiors to dissipate heat, and aggressive upping of battery life, the Apple specialist said. Additionally, the company brought previously Pro-level features like active noise cancellation, down the market, and replaced its aging $129 model with a fresh design, he added.

Having the button to take pictures and video, and the addition of the second 48-megapixel lens and expanded slow-motion video recording, will entice people to create more media, leaving users needing additional storage either on their phone or in iCloud, the columnist said. This could boost the bottom-line, he said.

Gurman said none of these changes are significant to drive a super-cycle but the company’s brand, product ecosystem and marketing muscle are all so strong that even bare minimum upgrade is usually enough.

Knowing well that the new iPhone hardware was a major leap over the previous iteration, Apple focused mostly on Apple Intelligence, its new suite of AI tools, the Apple leaker said. But these features work with iPhone 15 Pro models as well, he noted.

The improvement in the processor speed following Apple’s two-generation jump from A16 to A18, may be subtle for existing iPhone users and could be perceived only by those moving from Android to iPhone, he said.

Other hardware launches such as new AirPods 4, and Apple Watch hardware upgrades etc weren’t impressive either, he added.

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The Show-stealer: The highlight of the Glowtime event was the debut of some long-awaited health features, including hearing-aid software for the AirPods Pro, said Gurman. “But even without much razzle-dazzle on the hardware side, Apple has a saving grace: its new health features,” he said.

CEO Tim Cook signaled that Apple’s legacy will be its healthcare initiatives, Gurman said, adding that the company has already helped hundreds of millions of people lead healthier lives. The columnist noted that the sleep apnea detection on the Apple Watch can warn users having this condition, who can then go and consult a doctor. This, he said, can help a lot of people.

The most impressive health initiative coming this year is the new set of hearing feature, which turns AirPods into a clinical-grade hearing test machine as well as an over-the-counter hearing aid, Gurman said. The technology is now approved by the FDA, he noted.

Working out the cost advantage, Gurman said a conventional hearing aid could cost from $300 to north of $2,000, while Apple’s offering brings the price point to $249 with the AirPods Pro. “That's critical given that most U.S. insurance companies don't reimburse over-the-counter hearing-aid purchases. It also will integrate more seamlessly with the iPhone, giving it a better interface than most existing hearing devices,” he said.

Gurman noted that other future Apple health features will include “embedding heart-rate sensors in the AirPods, as well as an AI-driven health coaching service for the Apple Watch and iPhone.” He also said there are more blood-pressure management tools in development for the iPhone and iPad Health app.

Some of the smartest engineering minds are working on non-invasive glucose monitoring to detect diabetes, which could prove to be the “ultimate health addition for the Apple Watch,” he added.

Apple ended Friday’s session down 0.12 % to $222.50, according to Benzinga Pro data.

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