Apple iPhones Launch Without AI Features: Why It’s Not a Big Deal

As customers eagerly lined up outside Apple stores in San Francisco on Friday to grab the new iPhone 16 and 16 Pro, one significant feature was missing: Apple Intelligence. Analysts believe this AI enhancement, which includes an upgraded Siri, an image generator, and AI-generated emojis, will be a major reason for consumers to upgrade. However, it won’t be available until several software updates starting in October.

Ron Witt, a long-time iPhone user who recently upgraded from the iPhone 15 Pro, expressed his curiosity about Apple Intelligence. "Excited isn't the right word," he said. "I think I'm more intrigued." Yet for many customers, the allure of the upgrade lay elsewhere. Witt noted that for him, the camera has always been the main draw.

Other customers echoed similar sentiments, with some citing the age of their current devices as a reason to upgrade, while others simply enjoy getting the latest models.

At Apple’s flagship Fifth Avenue store in New York, buyers included both those upgrading old phones and serial upgraders. Saul Campos, who purchases a new iPhone every year, shared his excitement for the improved camera features, particularly the new Camera Control button that allows for intuitive adjustments while taking photos.

Outside the Manhattan store, Apple CEO Tim Cook commented to CNBC that it was too early to gauge demand compared to previous years but noted the enthusiastic atmosphere.

However, despite the lively lines, preorder sales have reportedly declined this year, with industry experts citing the absence of Apple Intelligence as a potential factor. Ming-Chi Kuo, a supply chain analyst, indicated that first-weekend preorder sales were down about 12.7% compared to the iPhone 15 series. He attributed this drop not only to the missing AI features but also to fierce competition in the Chinese market.

BofA Global Research found that shipping times for the iPhone 16 models were shorter than for last year’s iPhone 15, suggesting decreased demand. For example, the average global shipping time for the iPhone 16 was seven days, compared to nine days for the iPhone 15.

Despite these early indications, Apple analyst Gil Luria of D.A. Davidson suggested that the initial preorder data might not be significant. He predicted that as the AI features are introduced over the coming months, the upgrade cycle could gain momentum over the next 12-18 months.

The impact of Apple Intelligence on customer decisions remains uncertain. A recent survey by Consumer Intelligence Research Partners revealed that 44% of respondents felt their phones were "obsolete," while only 18% were upgrading for the new features.

Witt reminisced about the excitement surrounding the original iPhone launch, noting that while the process has become more streamlined with online ordering, the buzz of the early days has faded. "It's much more tame now," he remarked.

As of now, Apple has not provided any comment on these developments.

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