Apple (NASDAQ:AAPL)’s anticipated launch of its new artificial intelligence (AI) features is facing delays, potentially affecting the company’s market momentum. Despite these setbacks, some analysts maintain optimism, believing the AI features might still drive substantial upgrades for the upcoming iPhone 16. However, skepticism persists regarding the occurrence of a significant “super cycle” this year.
The concept of a “super cycle” refers to a substantial surge in upgrades, often following a period of muted demand. Past reports on Apple’s product launches have occasionally hinted at such cycles, but actual outcomes have varied. Historically, significant technological advancements or design overhauls have been critical in generating these cycles. This year’s iPhone models, however, appear nearly identical to their predecessors, which might dampen consumer excitement despite the integration of AI tools.
Technological Challenges
Part of the lukewarm reception is attributed to technological limitations. Notably, some features such as ChatGPT will not be included in the initial release. Additionally, Apple’s AI functionalities, known as Apple Intelligence, will not be available in the European Union or China. Mark Gurman from Bloomberg suggests that consumers might need to wait for the iOS 18.1 update next month to access the complete range of AI features.
Consumer Readiness
Global consumer caution, particularly in markets like China, also poses a challenge. Many consumers remain unfamiliar with AI applications, which could delay the adoption of new features. Apple might need to invest time and resources to educate its user base on the benefits of these advancements. This educational process is seen as critical for integrating AI into daily consumer routines effectively.
Ryan Waite, vice president of public affairs at Think Big, commented on the potential impact of Apple’s AI integration, stating,
“Apple’s AI integration could bring us closer to the concept of a true AI assistant — something that’s portable, convenient and seamlessly integrated into our daily lives.”
This suggests a significant shift in how consumers might interact with their devices in the future.
Moreover, Apple’s mobile wallet is also expected to receive an AI-driven update, aiming to enhance consumer spending behavior. Darryl Cumming, director of product management at NMI, emphasized this potential, stating,
“There’s a huge opportunity for Apple to change consumer spending behavior and take its mobile wallet to the next level by integrating it into its core AI strategy.”
Such integration could lead to more intuitive and personalized financial experiences for users.
Overall, while the delayed rollout of Apple’s AI features might hinder an immediate super cycle, the long-term implications suggest substantial shifts in consumer behavior and technology interaction. The success of these features will largely depend on Apple’s ability to educate and engage its user base with the new functionalities.
