Apple Delays AI Features, Hurting Super Cycle Hopes

An image of the iPhone 16 with its front display with the number 16 on the screen.

Apple has postponed the release of key artificial intelligence (AI) features for the iPhone 16. These features, including Image Playground and Genmoji, were expected to launch with iOS 18. However, Apple confirmed that they will now arrive with iOS 18.2, which will be released later this year. This delay is affecting hopes for the iPhone 16 to trigger a major sales boost, often referred to as a “super cycle.”


Postponed AI Features

Image Playground and Genmoji were anticipated to be standout tools for iPhone 16 users. Image Playground allows users to generate AI-created images, while Genmoji enables personalized emoji creation. Unfortunately, with the delay to iOS 18.2, early buyers of the iPhone 16 will not have access to these innovations right away. Other AI tools, like ChatGPT integration with Siri, have also been delayed until 2025.

An image of the iPhone 16 with its front display with the number 16 on the screen.

Minimal Design Changes for iPhone 16

The iPhone 16 looks very similar to the iPhone 15, offering only minor design updates. While it includes some improvements, such as enhanced camera performance and a new photo-snapping button, these updates are not seen as revolutionary. The lack of significant design changes might lead consumers to hold off on upgrading, which affects overall sales potential.


Market Hesitations and External Factors

Several external factors are also slowing Apple’s growth prospects. Economic challenges in regions like China are reducing smartphone demand, and Apple’s AI features will not be available immediately in the European Union due to regulatory issues. Combined with the delays in AI rollouts, these factors are dampening expectations for strong sales performance.

Looking Toward 2025

Many analysts believe that the next major product cycle will occur in 2025. By then, Apple’s AI features will likely be fully available, and the iPhone 17 could bring a more significant design update. Until then, Apple’s staggered rollout of AI tools will likely impact the iPhone 16’s sales growth.

SOURCES:Bloomberg
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