Apple iPhone 16 hits stores, but without Apple Intelligence AI

Apple (AAPL) the latest range of iPhones hit stores on Friday, but it’s notably missing one of its key selling points that the tech giant hopes will convince users to upgrade to their older models.

The iPhone 16, which is now stocked on Apple store shelves in around 60 countries, will be equipped with iOS 18, making it the company’s first. capable of artificial intelligence iPhone. But its suite of AI features, which it has dubbed Apple Intelligence, will only become available as a software update next month.

The smartphone pre-order request has already appeared weaker than expected.

In the first weekend since the debut, Apple sold around 37 million iPhone 16 smartphones — down nearly 13 percent from iPhone 15 first-weekend sales a year ago, Apple analyst Ming-Chi Kuo said Monday. Pre-orders were dampened by lower interest in the Pro models, largely due to the staggered launch of Apple Intelligence, Kuo said.

“One of the key factors behind the lower-than-expected demand for the iPhone 16 Pro series is that the main selling point, Apple Intelligence, is not available at launch with the launch of the iPhone 16,” he said.

Apple Intelligence will only be available on the iPhone 15 Pro or higher, a fact that analysts say would lead “super cycle” upgrade, and mark a the new era of growth for the tech giant.

T-Mobile (TMUS) boss Mike Sievert dismissed claims of weak demand for the newest iPhone lineup, calling them “nonsense” in a interview with CNBC Thursday. He said iPhone 16 sales were “not only good, but better than last year.”

“People are buying pros, they’re buying Maxes, so they’re buying up the food chain, and they’re buying at a higher rate than last year,” Sievert said.

An analysis of pre-orders by Jefferies (JEF) published on Wednesday found that demand for the new iPhone range is slowly starting to improve in the US, with delivery times for the iPhone 16 Pro reaching two to three weeks in seven major cities analyzed by the investment bank. But this is still below last year’s levels.

Recent research into why people upgrade their smartphones has found that a only 18% of consumers buy a new iPhone because of the new features. Most opt ​​to upgrade their smartphones only after they become outdated or are stolen or damaged.

It’s not just iPhones taking the stage on Friday. Other products making their debut on store shelves around the world include the Apple Watch Series 10, Apple Watch Ultra 2 and new models of AirPods.