Apple Inc. is facing an unprecedented challenge: persuading customers to buy its latest iPhones without their biggest new feature.
On Friday, Apple is launching the iPhone 16 lineup in almost 60 countries, including the US, China, India, Australia and South Korea. But the device won’t come installed with Apple Intelligence — the much-anticipated AI software that the company has been touting since June. That means users will have to download the software features over time as they become available during the coming weeks and months.
That’s put Apple in a tricky spot. It’s already marketing the AI features heavily, but some consumers may hold off on buying the new phones if they can’t enjoy the benefits right away. The new iPhone hardware, meanwhile, has only modest upgrades from prior models. A touch-sensitive Camera Control button that makes it easier to take pictures and video is the most notable change.
Even so, Wall Street remains bullish that Apple can accelerate growth during the all-important holiday season. Analysts estimate that revenue will increase 8% in the December quarter — the best showing for that period since the end of calendar 2021.
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