Apple is delaying the release of its new AI features, Apple Intelligence, which will now launch in October instead of with the initial iOS 18 and iPadOS 18 releases in September. This decision aims to allow more time to fix bugs and address stability concerns. Traditionally, Apple debuts new iPhone models and iOS software in September, but this delay means the first iPhone 16 models will ship without the new AI features.
Apple is relying on these AI updates to boost iPhone sales, expecting to ship at least 90 million units of the iPhone 16. The company hopes that the enhanced AI capabilities will be a significant selling point. Analysts are optimistic, with Dan Ives of Wedbush Securities predicting that the AI upgrade could lead to a "golden upgrade cycle" and add $30 to $40 per share.
Apple is also facing challenges in the Chinese market, where local competitors like Vivo, Huawei, and Xiaomi are increasing their shipments. Successfully integrating AI updates for Chinese users could help mitigate these difficulties.
Overall, while the delay may cause some initial hiccups, it is not expected to significantly impact Apple's long-term AI strategy.
