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

Apple is banking on Apple Intelligence to drive up sales.

Apple

• Apple is reportedly rolling out its new AI features, Apple Intelligence, later than expected.
• The delay aims to fix bugs and ensure the stability of Apple's AI features, Bloomberg reported.
• Apple hopes the much-hyped AI updates will boost iPhone sales.

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.

The tech giant usually debuts new iPhone models every September and releases 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.

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 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.

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

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