Apple has an answer to the iPhone 16 Pro disappointment

The recent launch of the iPhone 16 family has put Tim Cook and his team fully focused on generative AI as a game-changing technology. They advertised the iPhone 16 family as “built from the ground up for Apple Intelligence.” Many people hoped that the first consumer iOS smartphones to feature this feature would trigger a “supercycle” of consumer upgrades to boost sales.

It didn’t show up. Apple’s flagship iPhone 16 Pro falls short of expectations. There’s no respite in sight for the Pro, but Apple has options with smaller and cheaper iPhones.

Early sales indicate an overall iPhone order decline of 12 percent. While most smartphone makers would welcome the 37 million unit figure, Apple will be concerned about declining numbers. Notably, orders for the iPhone 16 Pro and 16 Pro Max are declining, while sales of the lower-priced consumer-facing iPhone 16 and iPhone 16 Plus are keeping Cupertino’s results up.

Consumers are slowly warming up to artificial intelligence in their smartphones. In Kantar’s post-launch Samsung report, twenty-five percent of Galaxy S24 owners said AI was a key part of their purchase decision. A recent YouGov survey in the UK found that sixty percent see it as an important factor when considering it, including 21 percent who think it is very important.

However, Apple’s reliance on generative AI as the iPhone’s marquee feature comes with its difficulties. The new iPhones don’t yet support any of the promised features. The first wave should arrive later this month; support for some ChatGPT features will arrive in December, with the full suite not shipping until March. Carriers and retailers are trying to include Apple Intelligence Latency in all their advertising to ensure consumers are aware of this latency… a latency that has not been present on Android phones, some of which have had these features for more than twelve months.

iPhone Pro audiences know that the promise of AI isn’t as attractive as actually shipping with AI, which no doubt contributes to consumers’ reluctance to purchase a premium device.

To this mix you can add the increased usability and value of the consumer iPhone 16 and 16 Plus. Since both support Apple Intelligence technology, Apple was forced to raise the specifications of standard iPhones. After years of working to spec standard iPhones to be at least a year behind schedule and have less capacity than Pro phones, generative AI means the iPhone 16 and 16 Plus will need to feature the latest A18 chipset and more RAM .

This makes these consumer-focused iPhones closer to the Pro models than the last few years, and offer much better value for money than the iPhone 15 or iPhone 14 models ever could. Thanks to artificial intelligence, the basics are enough for the full experience models.

There is more. Apple’s next model will provide the same capabilities at an even lower price. The fourth generation of iPhone SE will feature a new design, bringing it closer to the design of iPhone 16; a new chipset and increased memory will be needed to run generative AI software on iOS; and it will be the cheapest iPhone “built from the ground up for Apple Intelligence.”

The SE is expected to go on sale in March 2025, the same date Apple is expected to complete the rollout of its first-generation Apple Intelligence software.

Those waiting for Apple Intelligence to fully roll out and decide which iPhone to upgrade to will be able to consider the new iPhone SE alongside the iPhone 16 Pro and iPhone 16 Pro Max. Based on current evidence, Apple may succeed with the SE, but the disappointing iPhone 16 Pro will again be a sales success.

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