The lack of Apple Intelligence in some regions is impacting iPhone sales

AppleInsider

Apple's latest iPhones are flying off the shelves in some markets, and not in others. Apple CEO Tim Cook says this all comes down to where Apple Intelligence is available, and where it isn't.

Apple Intelligence

In a recent chat with CNBC ahead of the company's earnings call, Apple CEO Tim Cook explained that regions where the company has rolled out its AI platform, Apple Intelligence, saw stronger iPhone 16 sales compared to areas that didn't have it.

Tim Cook's remarks suggest that Apple Intelligence might have been a key factor in boosting iPhone 16 sales in markets where it's available. However, China has not yet seen the rollout of Apple Intelligence.

"During the December quarter, we saw that in markets where we had rolled out Apple Intelligence, the year-over-year performance in the iPhone 16 family was stronger than those markets where we had not rolled out Apple Intelligence," Cook said.

Despite the absence, China remains central to Apple's growth plans, and its success there is often driven by hardware advancements and strong brand loyalty.

What is Apple Intelligence?

Apple's approach to AI is famously understated compared to rivals like Google, but it's clearly making a difference. Apple Intelligence is working behind the scenes to improve the iPhone experience -- think smarter Siri interactions, better photo editing suggestions, or even personalized app recommendations.

This restrained approach fits Apple's style. Unlike some of its competitors that loudly market AI features, Apple tends to embed them into its ecosystem quietly, letting the technology work for itself.

Based on Cook's comments, this strategy is resonating with customers and giving the iPhone 16 lineup an edge in competitive markets.

Why AI matters now

The timing is no coincidence. AI is dominating the tech industry, and companies are rushing to integrate it into everything.

Google's Pixel phones have made a name for themselves with AI-powered features like real-time translation and ridiculously good camera software. Apple, meanwhile, has been more careful, rolling out features that integrate deeply with its devices.

Apple Vision Pro

For the iPhone 16, Apple Intelligence enhances the experience in ways that may not be immediately obvious but still make an impact. The phone's new hardware -- like better cameras and longer battery life -- gets a boost from these AI-powered features.

Apple's strategy of selectively launching Apple Intelligence in certain markets feels like a trial run. The company often takes this kind of gradual approach, whether it's rolling out new technologies or expanding product features.

Ultimately, Apple's take on AI feels true to its brand: practical, polished, and focused on the user. As AI continues to shape the tech world, Apple's ability to seamlessly integrate it into its ecosystem could set it apart in a big way.



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m68000

I find this hard to believe. 

abcdeft

As I previously said before this FR, Apple's market share also revenue in China is continuing its decline. The introduction of Apple Intelligence is unlikely to make a significant impact, as iPhones are now primarily purchased only by those specifically seeking an Apple device. Apple's AI features will fall short of local competitors due to strict regulations, less localization efforts and its own privacy concerns, limiting their effectiveness in China. Competing smartphones in the same price range as the basic iPhone 16, such as the OPPO Find X8 Pro, Xiaomi 15 Pro, vivo X200 Pro, and OnePlus 13, outperform the iPhone in many, if not all aspects. This is without even considering Huawei's Pura 70 Pro and Mate 70 Pro, which is attractive due to nationalism. The competition is intense, and no other global market rivals the Chinese market in this regard—Samsung doesn't even hold a significant presence there. An aging ecosystem and the buggy iOS 18 are unlikely to reverse this.

humbug1873

Totally agree ... the AI feature is a null feature in most of the world (like so many other). But since that was THE tent pole feature in the current run, why even bother with the iPhone 16? Only to realize years later - if (ever) that feature comes (like so many did not in the past) - that your then crappy old iPhone 16 is too underpowered to use the feature. So I kept my 12 Pro (in fact I bought a battery update right after the announcement of the iPhone 16).

Then again, its essentially a lie that China growth problem is due to the lack of AI features. China is declining for US products since the trade war was started by the convicted felon years ago and essentially kept by the Last President of the US ... the current US Führer will probably only accelerate this into a hot war. So tighten your belt, rough road ahead.

edited January 31

beowulfschmidt

humbug1873 said:

Totally agree ... the AI feature is a null feature in most of the world (like so many other). But since that was THE tent pole feature in the current run, why even bother with the iPhone 16? Only to realize years later - if (ever) that feature comes (like so many did not in the past) - that your then crappy old iPhone 16 is too underpowered to use the feature. So I kept my 12 Pro (in fact I bought a battery update right after the announcement of the iPhone 16).

Then again, its essentially a lie that China growth problem is due to the lack of AI features. China is declining for US products since the trade war was started by the convicted felon years ago and essentially kept by the Last President of the US ... the current US Führer will probably only accelerate this into a hot war. So tighten your belt, rough road ahead.

Came here to say the first part of this.  Apple touted Apple Intelligence as the reason to buy the 16.  When it doesn't work in one's region, and one takes a good hard look at the phone itself, there isn't much to recommend it over the 15 for most people.  Even if I had a use case for Apple Intelligence that was more than "playing around", which I don't, the rest of the phone is a very minor innovation from the previous model for many people.  I'm still using my 11, and it works just fine for me.  I imagine that's much the same for many owners of 12, 13, 14, and 15 phones.

entropys

I don’t think AI should be oversold asa major clause of declining sales.
The decline in China isn’t new and thus I doubt had anything to do with Orange Man Bad, but might in the future. It has been declining as people in China are buying  local brands for nationalistic reasons, government promotion, and price.

in other international markets the iPhone is just too expensive, therefore price.
Did I mention price?