Apple’s Big iPhone 16 Risk

By Douglas A. McIntyre Published Jul 29, 6:50AM EDT

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24/7 Wall St. Insights

The first Apple Inc. (NASDAQ: AAPL | AAPL Price Prediction) iPhone 16 models shipped this year likely will lack new AI features.
That will almost certainly stifle early sales.
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In the news, likely to shock Apple Inc. (NASDAQ: AAPL) investors and consumers, its most advanced artificial intelligence (AI) features will not be released soon and probably will not be completely available on the first models of the iPhone 16. That could undermine the launch of Apple’s most important product.

According to Bloomberg, “The release plan for Apple Intelligence presents the possibility that the first iPhone 16 models shipped to consumers this year will lack the new AI features and require a software update weeks later.” That will probably stifle early sales, and early adopters will wait for the fully featured model.

Apple’s next operating system software, iOS 18 and iPadOS 18, could be released in September. However, the version with the full suite of features of Apple Intelligence may not be available until October, which will almost certainly be after the iPhone 16 is launched.

Consumers and developers did not think a fully featured iPhone 16 would be delayed by about a month after the new smartphone went on sale. News from Apple’s Worldwide Developers Conference in June drove the stock higher on the company’s AI OS news. Certainly, an iPhone with advanced AI software would be key to an iPhone generation that could set new sales records. That may not happen.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.