Apple Inc is facing an unprecedented challenge: Persuading customers to buy its latest iPhones without their biggest new feature.
Apple yesterday launched the iPhone 16 lineup in almost 60 countries, including Taiwan, the US, China, India, Australia and South Korea. However, the device does not come installed with Apple Intelligence — the much-anticipated artificial intelligence (AI) software that the company has been touting since June. That means users would have to download the software features over time as they become available during the coming weeks and months.
That has put Apple in a tricky spot. It is already marketing the AI features heavily, but some consumers might hold off on buying the new phones if they cannot enjoy the benefits right away. The new iPhone hardware, meanwhile, has only modest upgrades from prior models. A touch-sensitive camera control button that makes it easier to take pictures and video is the most notable change.
Photo:Bloomberg
Even so, Wall Street remains bullish that Apple can accelerate its growth during the all-important holiday season. Analysts estimate that revenue would increase 8 percent in the fourth quarter — the best showing for that period since the end of 2021.
The new lineup includes two standard models — the 16 and 16 Plus — as well as the higher-end Pro and Pro Max. Preorders of the devices began last week, with shipments to stores and customers getting underway yesterday.
It is rare to see huge crowds of iPhone shoppers at Apple stores these days, but some diehard fans lined up at locations around the world ahead of the launch. The big question is whether ordinary consumers snap up the new model as well.
The initial units going on sale would run the iOS 18 operating system, but Apple Intelligence would require an over-the-air update to the iOS 18.1 software, which is launching next month.
Apple Intelligence was announced in June at the company’s Worldwide Developers Conference and has been available in a limited beta test for developers for the past several weeks.
Apple on Thursday released a public beta version of Apple Intelligence — one aimed at a wider audience — though most customers would not access it until the suite of features is released in its final form next month. Additional capabilities would not be ready until later, part of a staggered launch that would stretch into next year.
When the technology titan introduced the iPhone 16 line, it said that the devices were the first to be built “from the ground up” for Apple Intelligence. However, some iPhones from last year — the 15 Pro and Pro Max — would be able to support the features.
The look of the new phones is little changed from the iPhone 12 design from 2020. However, they feature noticeable battery-life improvements and camera advancements beyond the new button. Prices start at US$799 for the standard iPhone, ranging up to US$1,199 for the Pro Max.
POWERING UP: PSUs for AI servers made up about 50% of Delta’s total server PSU revenue during the first three quarters of last year, the company said Power supply and electronic components maker Delta Electronics Inc (台達電) reported record-high revenue of NT$161.61 billion (US$5.11 billion) for last quarter and said it remains positive about this quarter. Last quarter’s figure was up 7.6 percent from the previous quarter and 41.51 percent higher than a year earlier, and largely in line with Yuanta Securities Investment Consulting Co’s (元大投顧) forecast of NT$160 billion. Delta’s annual revenue last year rose 31.76 percent year-on-year to NT$554.89 billion, also a record high for the company. Its strong performance reflected continued demand for high-performance power solutions and advanced liquid-cooling products used in artificial intelligence (AI) data centers,
SIZE MATTERS: TSMC started phasing out 8-inch wafer production last year, while Samsung is more aggressively retiring 8-inch capacity, TrendForce said Chipmakers are expected to raise prices of 8-inch wafers by up to 20 percent this year on concern over supply constraints as major contract chipmakers Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and Samsung Electronics Co gradually retire less advanced wafer capacity, TrendForce Corp (集邦科技) said yesterday. It is the first significant across-the-board price hike since a global semiconductor correction in 2023, the Taipei-based market researcher said in a report. Global 8-inch wafer capacity slid 0.3 percent year-on-year last year, although 8-inch wafer prices still hovered at relatively stable levels throughout the year, TrendForce said. The downward trend is expected to continue this year,
‘BASICALLY A BAN’: Sources said the wording governing H200 imports from officials was severe, but added that the regulations might change if the situation evolves Chinese customs authorities told customs agents this week that Nvidia Corp’s H200 artificial intelligence (AI) chips are not permitted to enter China, three people briefed on the matter said. Chinese government officials also summoned domestic technology companies to meetings on Tuesday, at which they were explicitly instructed not to purchase the chips unless necessary, two of the people and a third source said. “The wording from the officials is so severe that it is basically a ban for now, though this might change in the future should things evolve,” one of the people said. The H200, Nvidia’s second-most powerful AI chip, is one
A proposed billionaires’ tax in California has ignited a political uproar in Silicon Valley, with tech titans threatening to leave the state while California Governor Gavin Newsom of the Democratic Party maneuvers to defeat a levy that he fears would lead to an exodus of wealth. A technology mecca, California has more billionaires than any other US state — a few hundred, by some estimates. About half its personal income tax revenue, a financial backbone in the nearly US$350 billion budget, comes from the top 1 percent of earners. A large healthcare union is attempting to place a proposal before
RSS