The AI function is still not available online, how can Apple Inc. (AAPL.US) convince consumers to purchase the new iPhone?

date
20/09/2024
avatar
GMT Eight
Apple Inc. (AAPL.US) is facing unprecedented challenges: convincing consumers to buy the latest iPhone without its most significant new feature. Notably, on Friday local time, Apple Inc. will officially launch the iPhone 16 series in nearly 60 countries/regions, including the United States, China, India, Australia, and South Korea. However, this device will not come preloaded with Apple Inc. Intelligence. The highly anticipated AI features that the company has been heavily promoting since June, meaning users will have to wait a few weeks and months to experience these features. This puts Apple Inc. in a dilemma. They have been heavily promoting the artificial intelligence features, but if consumers cannot immediately enjoy these benefits, some may postpone purchasing the new phone. At the same time, the new iPhone hardware only offers moderate upgrades compared to previous models. The most significant change is the touch-sensitive camera control button, making taking photos and videos more convenient. Nevertheless, Wall Street remains optimistic that Apple Inc. can accelerate growth during the crucial holiday season. Analysts predict an 8% revenue growth for the quarter ending in December, the best performance for that quarter since the end of 2021. Market expectations are that Apple Inc.'s sales will rebound in the last three months of this year. The new product line includes two standard models, 16 and 16 Plus, as well as high-end Pro and Pro Max. Pre-orders for these devices began last week and started shipping to stores and customers today. Currently, there are few Apple Inc. consumers seen in stores, but some loyal fans have already lined up at stores around the world. The biggest question is whether regular consumers will also rush to buy this new model. The devices initially released will run on the iOS 18 operating system, but Apple Inc. Intelligence will have to wait for the iOS 18.1 software update scheduled for October. Apple Inc. Intelligence was announced at the company's global developer conference in June and has undergone limited beta testing with developers over the past few weeks. On Thursday, Apple Inc. released a public beta version of Apple Inc. Intelligence, targeting a wider audience, but most users will have to wait until next month for the final version of the feature kit to be released to use it. Other features will be rolled out later, as part of a phased release that will continue into next year. As this tech giant releases the iPhone 16 series, the company states that these devices are the first to be built "from the ground up" for Apple Inc. Intelligence. However, some iPhones released last year (15 Pro and Pro Max) will also be able to support these features. The appearance of the new phones is not significantly different from the design of the iPhone 12 from 2020. Except for the new button, their battery life and cameras have seen significant improvements. The starting price for the standard version of the iPhone in China is 5999 yuan, and the Pro Max starts at 9999 yuan. In recent years, consumers have experienced significant delays in shipping when ordering phones from the Apple Inc. online store, indicating that supply was unable to meet demand. This year, this issue is not as severe, either because orders are being processed slower, or Apple Inc. produced more iPhones in advance. New orders for the standard model of the iPhone 16 will be delivered in early October, while the Pro version will be delivered around mid-October. This month, Apple Inc. also released the low-end AirPods and an upgraded version of the watch. The new headphones are called AirPods 4, with two versions priced at 999 yuan and 1399 yuan, with the latter having noise-canceling features. This feature was previously only found on the higher-end AirPods Pro priced at 1899 US dollars. Meanwhile, the latest smartwatch from Apple Inc. does not offer much reason for an upgrade. The new Series 10 has a larger display and thinner design, but is similar to the Series 9 in other aspects. Additionally, the only change for the high-end Ultra model from the company is the black option. However, these products may appeal to owners of older Apple Watch models or first-time customers. The iPhone, watch, and AirPods will not be the last new products from Apple Inc. in 2024. The company also plans to make significant changes to its Mac computers later this year. Apple Inc. will transplant its M4 processor, focused on artificial intelligence, from the iPad to the MacBook Pro laptops and iMac desktops. The company is also preparing for the most significant overhaul of the Mac mini in twenty years, including a smaller design and new chips.

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