iPhone 16 Launch: Sales Lag as Apple Intelligence Delayed

The much-anticipated Apple iPhone 16 has finally hit stores in around 60 countries. Yet, initial sales have not matched the fervor of past releases, leaving analysts and consumers wondering if Apple’s latest tech gem is as polished as promised. With Megan Cerullo reporting for CBS MoneyWatch and analysis from Anne Marie Lee, the buzz around Apple’s latest smartphone launch is palpable but perhaps not in the ways the tech giant hoped.

One major talking point is the absence of Apple Intelligence at launch — a feature heavily touted but missing from the initial release. TF International Securities analyst Ming-Chi Kuo highlighted this shortfall, noting that expectations were set high with the advertised AI abilities, yet they remain absent until the iOS 18.1 update rolls out in October. The current iOS 18 update, with its shimmering new design, lacks these capabilities, potentially delaying consumer gratification.

Despite the delay, eager tech enthusiasts won’t have to wait too long. A public beta version of the iOS 18.1 update, which includes Apple Intelligence, is already available. This update introduces enhancements like “text rewriting tools” and a redesigned, more intuitive version of Siri. But for now, the absence of these features on the iPhone 16 has potentially dampened its immediate appeal, with preliminary sales reportedly down by 13% compared to the iPhone 15 as highlighted by Kuo.

Lisa Eadicicco, a senior editor at CNET, adds her perspective to the conversation. She remarked on the evolving nature of consumer expectations, stating that buyers are no longer swayed by incremental updates year-over-year. Instead, consumers are holding out for substantial improvements that genuinely enhance their smartphone experience.

As the gradual rollout of Apple Intelligence begins, many consumers may choose to wait before deciding to upgrade. Apple plans to integrate this AI across its ecosystem, offering significant improvements to native apps like Mail and Notes, along with enhanced functionality for Siri. The seamless integration of language understanding and image creation is poised to change how users interact with their devices, utilizing the power of Apple silicon to make daily tasks even more intuitive and connected.

While the iPhone 16’s lack of immediate AI features may see the device play a slow-and-steady game out of the gate, it’s important to note that Apple’s long-term vision with Apple Intelligence promises transformative changes that could reignite consumer interest once the full suite of features becomes accessible. Watch this space as Apple continues to redefine how we interact with technology, reinforcing its presence not just with new devices but with innovative software that changes daily living.