Gen Z probably won't be lining up for the iPhone 16. Here's why Apple shouldn't worry too much.

• Gen Z loves Apple but isn't prioritizing AI features in new smartphone purchases, a survey said.
• Still, Apple Intelligence is expected to boost iPhone 16 sales.

Gen Z is loving Apple, but that doesn't mean they'll be first in line to buy the new iPhone.

The tech giant made it clear the latest and upcoming iPhone models will be the best way to use its artificial intelligence software to its fullest capacity. However, AI isn't a big selling point for young iPhone owners, according to a survey of 575 Morgan Stanley summer interns.

An overwhelming majority, or 93%, of the interns own iPhones, but only 4% of respondents said AI-powered features are a top priority when considering buying a new smartphone.

Still, it's not bad news for Apple, analysts told Business Insider.

"It's a long game," said tech analyst Jacob Bourne at Emarketer, a sister company to BI.

Bourne said that in a future where all smartphones have AI features, it will come down to which company can make its software the most useful.

Like almost every other Big Tech company, Apple is investing in AI and ushering in a new era of intuitive virtual assistants, image generators, and features that can make everyday life a little easier.

Apple Intelligence is the company's official entrance into the AI arms race, and anyone with an iPhone 14 Pro or earlier will have to upgrade to have full access to it.

"Apple has a huge following of loyalists, and those people are going to want to experience Apple Intelligence on the iPhone," Bourne said.

Dan Ives, managing director and senior analyst at Wedbush Securities, is calling it a potential "golden upgrade cycle," and Apple won't need young Gen Zers to achieve its goal.

"AI will change the landscape, and Apple has a unique opportunity to own the consumer AI revolution," Ives told BI.

Wedbush Securities reports there are 1.5 billion iPhones being used in the world. This, paired with the number of Morgan Stanley interns using the devices, suggests Apple can rely on its customers to remain loyal.

"AI is coming, and this will take some getting used to by Apple consumers," Ives said.