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Apple is betting on AI to drive an iPhone 'super cycle' — but it's not quite ready

Many investors are convinced that Apple's new artificial intelligence features will push millions to finally upgrade to the iPhone 16, announced today. Others aren't so sure.

Daniel Van Boom
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Apple Intelligence is the name of Apple's suite of AI tools, which will begin to roll out in beta next month. Apple.

Artificial intelligence, says Tim Cook, will make the iPhone not only more useful but more delightful too. The AI that will soon be integrated into the iPhone’s operating system, the Apple CEO said, “marks the beginning of an exciting new era".

Those comments were made as the tech giant unveiled its new iPhone 16 series overnight. Unusually, however, the era Cook describes won’t actually begin when those iPhones go on sale.

When Apple’s eager customers power up their new iPhone 16 devices on 20 September, they will be missing the “Apple Intelligence” suite of AI features that Cook promises will be revolutionary. A beta version of Apple Intelligence tools will roll out in October in the US, with a full 1.0 launch expected early next year.

This is significant not just for Apple’s millions of customers but also for investors.