Apple’s highly anticipated artificial intelligence integration, Apple Intelligence, has failed to impress industry analysts, with some predicting that it may not drive significant iPhone upgrades. According to prominent Apple analyst Ming-Chi Kuo, the lackluster performance of Apple Intelligence is expected to contribute minimally to iPhone sales growth in the short term.
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Apple Intelligence Fails to Boost iPhone Demand.
In a recent social media post, Kuo reaffirmed his stance that Apple Intelligence would not have the expected impact on iPhone shipments. This echoes his earlier prediction from October 2024, where he suggested that Apple’s AI advancements would unlikely boost sales substantially.
Market sentiment towards Apple Intelligence has become increasingly cautious, particularly following challenges surrounding Apple’s planned Siri enhancements. Investment firm Morgan Stanley recently revised its expectations for Apple’s stock, citing concerns over the delayed rollout of key AI-powered Siri features.
Delayed Siri Features Impact Consumer Sentiment
Apple had initially planned to introduce several AI-driven improvements to Siri, including enhanced personal context recognition and more advanced in-app actions. However, these features have been delayed due to unforeseen challenges, diminishing consumer enthusiasm.
Reports suggest Apple had already accounted for this weaker AI performance when providing conservative iPhone sales forecasts to suppliers in early 2025. The company anticipated delays in its generative AI advancements would negatively impact demand.
Apple Intelligence Debuts with Limited Functionality
First announced at WWDC 2024, Apple Intelligence was expected to revolutionize iPhone user interactions through cutting-edge generative AI technology. However, its initial release with iOS 18.1 in October 2024 only included a partial set of features. Apple heavily promoted a more contextually aware Siri in its marketing campaigns, but many of these functionalities remain unavailable, leading to consumer frustration.
Apple CEO Tim Cook addressed these concerns in January 2025, stating that iPhone 16 sales were more substantial in regions where Apple Intelligence was accessible. However, this observation was made before the postponement of Siri’s personal context capabilities and App Intents, which means the initial momentum may not sustain itself in the long run.
Future of Apple Intelligence and iPhone Sales
Siri’s long-awaited AI-driven upgrades are expected to arrive “in the coming year,” suggesting that these improvements may not launch until iOS 19. Given the slow rollout of Apple Intelligence, Apple may shift its focus to other key selling points for future iPhones.
Reports indicate that iOS 19 will feature a significant user interface redesign, possibly as an effort to divert attention from the delayed AI enhancements. Apple is reportedly gearing up for a significant revamp of its iPhone 17 lineup, with speculation suggesting the launch of a new iPhone 17 Air model featuring an ultra-slim design.
Apple’s Strategy: Shifting Focus Beyond AI
If Apple Intelligence continues to underperform in the broader market, it could substantially impact the iPhone 16 series more substantially than future devices. Apple is developing alternative selling points for the iPhone 17, potentially relegating AI to a secondary role while highlighting design refinements and camera upgrades.
With increasing competition in the AI-powered smartphone market, Apple faces pressure to deliver a seamless and compelling user experience. Whether the company can turn the tide and reposition Apple Intelligence as a game-changing feature remains to be seen. Until then, Apple may rely on hardware innovations rather than AI advancements to drive future iPhone sales.
