AI features are delayed, how does Apple convince consumers to buy the new iPhone

Apple (AAPL.US) is facing unprecedented challenges: convincing consumers to buy the latest iPhone without its most significant new feature.

Finance and Economics APP noticed that on Friday local time, Apple will officially launch the iPhone 16 series in nearly 60 countries/regions, including the United States, China, India, Australia, and South Korea. However, this device will not come pre-installed with Apple Intelligence. The highly anticipated AI features that the company has been heavily promoting since June, meaning users will have to wait for weeks and months to experience these features.

This puts Apple in a dilemma. It has been heavily promoting the artificial intelligence features, but if consumers cannot immediately enjoy these benefits, some may postpone purchasing the new phone. At the same time, the new iPhone hardware only has moderate upgrades compared to previous models. The most significant change is the touch camera control button, making photography and video recording more convenient.

Nevertheless, Wall Street remains optimistic that Apple can accelerate growth during the crucial holiday season. Analysts expect revenue to grow by 8% in the December quarter, the best performance for that quarter since the end of 2021.

Market expectations are that Apple's sales in the last three months of this year will rebound.

The new product line includes two standard models, 16 and 16 Plus, as well as the high-end Pro and Pro Max. Pre-orders for these devices started last week and are now shipping to stores and customers.

While there are few large groups of iPhone consumers in Apple stores now, some loyal fans have lined up at stores around the world. The biggest question is whether ordinary consumers will also rush to buy this new model.

The initially released devices will run on the iOS 18 operating system, but Apple Intelligence will have to wait for the iOS 18.1 software update scheduled for October.

Apple Intelligence was unveiled at the company's global developer conference in June and has undergone limited beta testing with developers over the past few weeks.

On Thursday, Apple released the public beta of Apple Intelligence, targeting a broader audience, but most users will have to wait until next month for the final version of the feature suite to be released before they can use it. Other features will be ready later as part of the phased release, continuing into next year.

As the tech giant launches the iPhone 16 series, the company stated that these devices are the first batch designed "from scratch" for Apple Intelligence. However, some iPhones launched last year (15 Pro and Pro Max) will also be able to support these features The appearance of the new phones is not much different from the design of the iPhone 12 in 2020. However, apart from the new buttons, both their battery life and cameras have been significantly improved. The starting price for the standard version of the iPhone in China is 5999 yuan, and the Pro Max starts at 9999 yuan.

In the past few years, consumers ordering phones from the Apple online store have encountered serious delivery delays, indicating that supply cannot meet demand. This year, this issue is not as severe, either because order speeds have slowed down, or Apple has produced more iPhones in advance.

New orders for the iPhone 16 standard model will be delivered in early October, while the Pro version will be delivered around mid-October.

Apple also released low-end AirPods and an upgraded version of the watch this month. The new earphones are called AirPods 4, with two versions priced at 999 yuan and 1399 yuan, the latter with noise-cancelling functionality. This feature was previously only available on the high-end AirPods Pro priced at $1899.

Meanwhile, Apple's latest smartwatch does not offer much reason for an upgrade. The new Series 10 has a larger display and a thinner design, but is similar to the Series 9 in other aspects. The only change to the high-end Ultra model is the addition of a black option. However, these products may attract customers with older Apple Watches or those new to the category.

The iPhone, watch, and AirPods will not be Apple's last new products in 2024. The company also plans a major overhaul of its Mac computers later this year.

Apple will transplant its AI-focused M4 processor from the iPad to the MacBook Pro laptops and iMac desktops. The company is also preparing the most significant overhaul of the Mac mini in twenty years, including a smaller design and new chips