The reported delay in the release of Apple Intelligence won't hurt Apple's potential for a "golden upgrade cycle" with the iPhone 16, analyst said.
Apple
Apple is delaying the launch of Apple Intelligence after weeks of anticipation, but the tech giant might be onto something.
The June Worldwide Developers Conference keynote showcased features like a new ChatGPT-powered Siri, AI-generated emojis, and more intuitive apps. These were initially expected to be rolled out starting in September with the release of iOS 18 and iPhone 16.
But the tech giant is pushing the start date to October, according to Bloomberg. This means a new iPhone and its software will arrive weeks before Apple Intelligence.
Analysts told Business Insider that it's no big deal.
"It really doesn't change the most important point, which is that Apple's going to have a two- to three-year super cycle for upgrades of iPhones, Macs, and iPads driven by Apple Intelligence," Deepwater Asset Management analyst Gene Munster said.
When Apple announced its own take on artificial intelligence at WWDC, it was already weeks behind similar announcements from its competitors in the AI arms race. Analysts believed that Apple would have to deliver if it wanted to be a force in this new tech frontier, and it didn't disappoint.
"We see the narrative of Apple being late to AI as overblown, given it is consistent with its late, premium entrant strategy, and we believe Apple is in a unique position to capitalize on AI as a premium device maker," Morningstar tech analyst William Kerwin said.
The delay shouldn't impact the buzz around a new iPhone in September, analysts said. It might even drum up more excitement for the highly anticipated "golden upgrade cycle" that analyst Dan Ives predicted the iPhone 16 will spark.
Munster told BI that Apple should consider moving the iPhone 16's release date to align with Apple Intelligence. It would be the risk of shifting an estimated 15% of revenue from the September quarter to the December quarter, but Munster said investors probably won't mind.
He added that Apple announced at WWDC that the new software's full capabilities would roll out over the next year, so "a one-month delay doesn't change" its potential to have a material impact on iPhone sales.
Overall, it appears analysts are more concerned that Apple stays true to its brand by taking its time to put out innovative products.
They'll be tuning in to Thursday's earnings call to potentially learn more about which features will be in the initial rollout.
"To us, it's more important that these features are flawless and well-received than being early," Kerwin said.
