iPhone maker Apple’s (AAPL) much-awaited launch of AI (artificial intelligence) features has been postponed as the company seeks to ensure that it avoids any potential bugs and that the software has the best possible output. According to a Bloomberg report, the launch of the features that were expected to be rolled out along with the iPhone and iPad software overhauls has been delayed by a few weeks into October alongside planned software updates. Meanwhile, the initial iOS 18 and iPadOS 18 releases are scheduled for September.
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Having said that, the tech giant is geared up to release the Apple Intelligence features only to developers this week through its iOS 18.1 and iPadOS 18.1 betas, which were launched in June. This pre-release will help Apple to obtain feedback from a wider pool of developers who will test the features and help fix bugs, if required. The release of Apple Intelligence features is an important event for the company to bolster its strategic position in the highly competitive generative AI market and boost sales.
AI Features and iPhone 16 Launch
Some of the pivotal features of Apple Intelligence include key notifications, web page and voice note summaries, tools to improve writing, a revamp to Siri, and integration of OpenAI’s ChatGPT. The Apple Intelligence features will also process most of the queries on the device, negating the requirement to share the data on the cloud and ensuring customer privacy.
The delayed launch also means that Apple’s iPhone 16, set to launch in September, will be shipped without the Apple Intelligence features. Unfortunately, customers will have to wait for a software update to the iPhone 16 to install the features into their systems.
Insights from TipRanks Bulls Say, Bears Say tool
According to TipRanks Bulls Say, Bears Say tool, investors and analysts are looking forward to the new iPhone 16 release and Apple Intelligence, as they are expected to boost sales. However, Bears contend that the iPhone 16 and AI features may not drive significant sales to justify AAPL stock’s lofty valuation. Bears also pointed out regulatory headwinds and intense competition.
Is Apple a Buy or Sell Right Now?
Wall Street is widely awaiting Apple’s Fiscal third-quarter results due on August 1. Ahead of the earnings print, some analysts raised their price targets on AAPL stock, as they see the launch of the iPhone 16 and the Intelligence features as a boon in the coming days.
Even so, analysts currently remain divided on Apple stock’s trajectory. On TipRanks, AAPL has a Moderate Buy consensus rating based on 25 Buys, nine Holds, and one Sell rating. The average Apple price target of $240.61 implies 10.4% upside potential from current levels. AAPL stock has already gained over 13% year-to-date.
