Apple

Apple's Slow AI Rollout May Affect iPhone 16 ‘Super Cycle’ Upgrade

09 September 2024

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Paikan Begzad

Summary

Apple’s highly anticipated AI integration may take longer to fully roll out, potentially affecting the expected iPhone 16 "super cycle" of upgrades. According to a report by Bloomberg, while the tech giant is set to introduce some AI-powered features in its upcoming iPhone launch, the complete suite won’t be available until the iOS 18.1 update, which is set for release next month.

A "super cycle" refers to a surge in upgrades after a period of lower demand. However, analysts are divided on whether this will materialize with the iPhone 16, as AI features, despite their potential, may take time to resonate with the average consumer. Mark Gurman from Bloomberg suggests that a large-scale upgrade cycle is unlikely this year due to several factors, including economic caution in markets like China and minimal visual changes in the new iPhone model.

Although AI tools will be a focus during the iPhone 16 launch, some of the most exciting capabilities will not be ready until later, leaving consumers waiting for features such as Apple Intelligence, Apple's version of an advanced AI assistant. Furthermore, features similar to ChatGPT won’t be part of the initial rollout, and Apple's AI assistant will not be available in regions like the European Union and China due to regulatory constraints.

Experts point out that the delayed release of Apple’s AI features could affect consumer enthusiasm. Many users are unfamiliar with the full potential of AI, and it may take time for Apple to demonstrate the value of these new tools.

Despite these delays, industry insiders remain optimistic about the long-term impact of AI on Apple’s ecosystem. Ryan Waite, VP of Public Affairs at Think Big, commented, “Apple’s AI integration has the potential to revolutionize the digital experience, bringing us closer to a truly seamless AI assistant that integrates into everyday life.”

Apple's AI initiatives go beyond just smartphones. According to a PYMNTS report, Apple is working on incorporating AI into its mobile wallet to deliver more personalized and intuitive financial services. By combining AI with Apple Pay, the company aims to create smarter, more context-aware transactions that could reshape consumer behavior in digital commerce.

As Darryl Cumming, Director of Product Management at payments solutions company NMI, explained, “Apple’s AI strategy opens up new possibilities for enhancing its mobile wallet, potentially transforming how consumers make decisions within the Apple ecosystem. We’re just at the beginning of what AI can do.”

While the initial AI rollout may be slow, experts believe Apple’s long-term vision will bring significant changes to how users interact with their devices and make purchases, amplifying personalization across the App Store and beyond.