Apple iPhone 16 lineup Although it hit store shelves in about 60 countries on Friday, the new phone hasn’t been selling like hotcakes.
Some analysts believe the lackluster demand for the new phones is because the new products lack a key feature – artificial intelligence capabilities that the tech giant has been highly promoting.
“One of the main factors behind the weaker-than-expected demand for the iPhone 16 Pro series is that its key selling point, Apple Intelligence, will not be available at the launch of the iPhone 16,” Ming-Chi Kuo, Apple analyst at TF International Securities, said in a blog post.
Despite the company’s best efforts, the release of Apple Intelligence has been more complicated and drawn out than much of the marketing surrounding it suggests.
The new iPhones come preloaded with Apple’s latest software upgrade, iOS 18. However, contrary to previous reports, iOS 18 will not include artificial intelligence enhancements. Instead, Apple says that Apple Intelligence will begin with iOS 18.1, due for release in October.
Consumers who want to try out Apple Intelligence can download a public beta version of the software, which was made available on Thursday, just three days after the release of iOS 18. Apple Intelligence features integrated into iOS 18.1 include a “text rewriting tool” and a “shiny new Siri design,” The Verge reports.
Kuo noted that pre-orders for the iPhone 16 series in its first week of release were down about 13% compared to the iPhone 15 series during the same period last year. “This was primarily due to lower-than-expected demand for the iPhone 16 Pro series,” he said.
Kuo added that Apple employees, who would normally have to wait several weeks after a new iPhone is released before being able to buy one, can now take advantage of the employee discount when they buy the new phone.
“This could be another sign that early demand for the iPhone 16 is weaker than expected,” Kuo wrote in an X post.
Apple Intelligence rollout will be gradual
When iOS 18.1 is officially released, Apple Intelligence will be integrated into apps like Mail and Notes. According to Apple, the new technology is designed to simplify everyday tasks like creating lists, and “harnesses the power of Apple silicon to understand and create language and images, take actions across apps, and draw from personal context to simplify and speed up everyday tasks.”
Apple Intelligence is also expected to help improve Siri, Apple’s virtual assistant, although the enhancements may not be noticeable at first. According to the iPhone 16 description on Apple’s website, the first iOS upgrade will give Siri “richer language understanding capabilities.” Users will also be able to communicate with Siri via text, “switching seamlessly between text and voice while accelerating everyday tasks.”
Apple Intelligence will also be available on iPhone 15 Pro models once a software update arrives.
CNET senior editor Lisa Airdicicco told CBS News that she’s not surprised that demand for the iPhone 16 hasn’t skyrocketed.
“For people who are considering upgrading, year-over-year improvements aren’t important anymore,” she told CBS News. “I think the days of buying the latest iPhone every year are over. I think people who have phones that are a few generations old could really benefit from upgrading because they’re going to get better battery life.”
People only upgrade when they “need” a new phone, Iditchko said, which CNET data shows is usually every three years.
