Apple Intelligence's features won’t boost iPhone sales until 2027, claims report

Apple’s latest AI-driven features, set to roll out with the iOS 18.1 update, are generating excitement among users. These new Apple Intelligence tools, powered by Apple’s own large language models as well as OpenAI’s ChatGPT, are expected to bring six new capabilities to the iPhone 16 series and last year’s iPhone 15 Pro models.

However, according to a recent report from Edison Lee, an analyst at Jeffries, the full potential of these features might not be realised for another two to three years.

AI Features expected to boost user experience, but not sales
The iOS 18.1 update, slated for release at the end of October, will introduce several new Apple Intelligence features, including AI-powered Writing Tools, Notification Summaries to declutter users’ notifications, and a Clean Up feature in Photos.

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Siri will also get an upgrade, allowing it to handle more complex tasks, and a new Memories feature in Photos will offer a fresh way to relive past moments.

Despite the excitement, analyst Edison Lee has suggested that these features, in their current form, may not be enough to significantly impact iPhone 16 sales.

According to him, Apple Intelligence is not yet advanced enough to deliver “serious AI” performance, and the necessary hardware changes for fully realising these AI features might not come until 2027.

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Apple’s long-term AI potential
This prediction goes against the optimistic forecasts from some industry experts, who believed that the introduction of these AI features would lead to a sales “supercycle” for the iPhone 16 series.

So far, the new iPhones have not seen the surge in demand that some had predicted, despite being the only devices capable of running Apple Intelligence features.

While the AI performance may currently be limited, Lee believes that Apple could eventually outpace its competitors in the AI space.

He pointed out that Apple’s unique position as a company that integrates both hardware and software allows it to leverage its proprietary data to deliver personalised AI services more affordably in the long run.

For now, users can enjoy the initial benefits of Apple Intelligence with the iOS 18.1 update, but the full AI experience might take a few more years to reach its peak.