When Apple revealed its AI ambitions at the WWDC event in June, industry experts speculated that the new capabilities might propel the iPhone 16 into a “supercycle.” Similar to the transformative impact of 5G, the introduction of Apple Intelligence was expected to entice lingering customers to upgrade their devices.
We’ll gain a clearer understanding once Apple showcases the iPhone 16 during tomorrow’s “It’s Glowtime” event in Cupertino. However, early indications suggest that the gradual rollout of Apple Intelligence could significantly hinder the potential for supercycle success.
In June, Apple presented a vision for AI that seamlessly aligns with its goal of enhancing user experience. Relying on smaller models rather than the extensive frameworks seen in platforms like Google Gemini and OpenAI’s ChatGPT, Apple aims to elevate existing functionalities through generative AI.
Yet, as noted by Bloomberg, potential delays may affect the financial performance of the iPhone 16. Although WWDC showcased numerous promises, many of these innovations may not materialize until 2025. Additionally, regional barriers, especially in the EU and China, pose significant challenges—particularly in China, which is critical to Apple’s financial health. Furthermore, integration with ChatGPT is also unlikely at launch.
Leading up to WWDC, speculation arose about whether Apple could establish itself as a formidable contender in the generative AI landscape. While the conference impressed with its demonstrations, Apple still faces considerable competition.
At this moment, only the iPhone 15 Pro and Pro Max have received approval to operate Apple Intelligence, but tomorrow’s event aims to broaden this availability, amidst rumors of greater uniformity across the iPhone 16 range. The standard models are expected to feature A18 chips, whereas the Pro versions will boast A18 Pro processors.
Sales performance is vital for Apple and its investors, but the implementation of Apple Intelligence is a complex initiative. Rushing its release might yield detrimental effects on the long-term financial health of the company compared to a measured, phased approach.