Apple’s iPhone 16 faces challenge of slow rollout of Apple Intelligence

When fully released, Apple Intelligence will combine the power of Apple-built generative models with personal context while taking an extraordinary step forward for privacy.
Apple’s new iPhone 16 family failed to energize investors with highly touted “Apple Intelligence” features still in beta testing and expected to take many months, if not years, to fully roll out globally.
Reuters:
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Apple’s shares fell 1% in premarket trading on Tuesday, a day after the U.S. tech giant unveiled its new iPhones that sport hardware-level integration for applications based on artificial intelligence but with limited changes to the external design.
The phones will use AI features dubbed Apple Intelligence to improve the company’s voice assistant Siri as well as enhance the camera.
These AI features will arrive on iPhones in beta next month. The company did not say when it would move beyond test.
“With lots of words like “later this year” and “early next year”, the core Apple message for iPhone 16 was: Next year will be better,” Needham analyst Laura Martin said in a note.
Apple has yet to announce an AI partner in China to power the 16s and Apple Intelligence, the company’s AI software, will only be available in Chinese languages next year.
“What’s the point of buying it if you can’t use AI?” wrote one user on Weibo, China’s X-like platform. Another commented: “Without AI as the biggest selling point, it should be half price.”

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MacDailyNews Take: Executing a vaporware strategy is an unfortunate necessity without a visionary CEO and it takes time to actually realize (code, test, build out datacenter infrastructure, etc.) a grand marketing vision.

When you're caught flat-footed like Tim Cook's Apple, you pop into scramble mode to try to catch up. Early on, you hit it with a big marketing flourish (WWDC24) in order to buy some more time. Then you dribble out features as they get finished & actually exist. Classic vaporware. https://t.co/I1J4y3aDNy pic.twitter.com/fLKvxGj4G3
— MacDailyNews (@MacDailyNews) July 31, 2024

iPhone sales will build over years as Apple Intelligence vaporware condenseshttps://t.co/r5AvhVkoAz
— MacDailyNews (@MacDailyNews) September 5, 2024

You know, some people get upset when we point out that Tim Cook is a boring, reactive caretaker who’s not really the best person to be running Apple today or for at least the past several years.
Operations manager Cook should have been a 3-5 year stopgap after Steve Jobs’ untimely passing, running the iteration playbook, providing continuity for the company while it found a real CEO. Instead, he hung on — and keeps hanging on — well past his sell-by date.
Sigh.
You can be upset with us for having the temerity to call it like we see it, but the fact remains that Apple would be doing significantly better today with a visionary who’d have seen AI on the horizon, who’d have recognized the intrinsic importance of Siri and therefore invested in it instead of criminally neglecting it, and who wouldn’t have squandered the company’s gigantic leads in things like personal assistants and podcasting. – MacDailyNews, August 22, 2024
Larger displays on iPhone 16 Pro models, and hundreds of millions of iPhones that are 4+ years old, will do the heavy lifting for iPhone sales and iPhone’s average selling price (ASP).

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