Tech

Apple is reportedly delaying the release of Apple Intelligence. Here's what that could mean for its AI strategy.

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Apple is banking on Apple Intelligence to drive up sales. Apple
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Apple is reportedly rolling out its new AI features, Apple Intelligence, later than expected.

The launch will miss the initial iOS 18 and iPadOS 18 releases planned for September and arrive a few weeks later in October, Bloomberg reported, citing people with knowledge of the matter.

The decision to split the two releases is reportedly intended to give the company more time to fix bugs. It's also partly due to concerns over the stability of Apple's AI features, the report said.

Ahead of the company's developer conference earlier this year, there was significant pressure on Apple to clarify its approach to AI.

The tech giant's usual strategy has been to debut new iPhone models every September and release a fresh version of its iOS software to accompany them. However, Apple Intelligence's new release plan could mean the first iPhone 16 models would be shipped without the new AI features.

Apple has been counting on its AI updates to boost iPhone sales. Taking extra time to ensure Apple Intelligence hits the right note, even if it means shipping delays, suggests the company is doubling down on its strategy of creating AI features that are genuine game changers.

The company reportedly expects to ship at least 90 million units of the upcoming iPhone 16 models as it banks on Apple Intelligence to drive sales.

If Apple can figure out a way to get the AI updates into the hands of Chinese iPhone users, it could also surely fix some of the difficulties it's had in the country this year.

The tech giant has been struggling to keep its iPhone sales up in the important market amid a flood of local competition. Competitors like Vivo, Huawei, and Xiaomi are seeing shipments increase, and demand for Chinese-made smartphones is rising.

Analysts have been optimistic about the tech giant's chance of success with its AI overhaul.

Earlier this month, Dan Ives of Wedbush Securities said the iPhone 16's AI upgrade "could represent a golden upgrade cycle for Cupertino."

"We believe AI technology being introduced into the Apple ecosystem will bring monetization opportunities on both the services, as well as iPhone/hardware front and adds $30 to $40 per share," he added.

It's possible that any teething problems ahead of launch won't significantly impact its overall AI strategy, but that remains to be seen.

Representatives for Apple did not immediately respond to a request for comment, made outside normal working hours.

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Beatrice Nolan was a tech reporter on the business news team in the UK. She joined Insider in January 2022 as a fellow on Business Insider's careers desk. Beatrice covered tech and the future of work, with a focus on artificial intelligence. Some of her stories and early experiments with ChatGPT are widely cited. Beatrice has also discussed her work covering AI trends on panels and radio shows, including NPR.She was based in Business Insider's London office and graduated from the University of  York with a bachelor's degree in English.Featured Articles:Artists say AI image generators are copying their style to make thousands of new images — and it's completely out of their control.ChatGPT was a black swan eventFinland is the world's happiest country, but Finns say we're confusing happiness for something elseThe world is splitting between those who use ChatGPT to get better, smarter, richer — and everyone elseThis man used AI to write and illustrate a children's book in one weekend. He wasn't prepared for the backlash.ChatGPT has only been around for 2 months and is causing untold chaosTwo professors who say they caught students cheating on essays with ChatGPT explain why AI plagiarism can be hard to proveChatGPT wrote college application essays. Admissions professionals said they passed for essays written by students but wouldn't have a chance at any top colleges.College professors are considering creative ways to stop students from using AI to cheatChatGPT wrote my cover letters. Here's how recruiters responded.