Instead of launching the full suite of software capabilities at once with the announcement of the iPhone 16, Apple is gradually rolling out its new iOS 18 and AI features.
In an unprecedented move, Apple is playing the long game this fall, gradually releasing key software upgrades after last week's launch of the new iPhone 16.
One week later, the iOS 18 upgrade is finally here. The update comes with Rich Communication Services (RCS) messaging and more flexibility in customizing the control center, lock screen and home screen.
But, for those who ran out to buy the iPhone 16 for the new AI features, they'll still have to wait until October for the beta version of Apple Intelligence to be released.
The tech and telecom industries are holding their collective breath on whether Apple Intelligence can compete with new AI features from the likes of Google and Samsung.
In the meantime, there's plenty to unpack from the software and hardware updates Apple has released thus far. Here's a look at what's new in the iOS 18 update, how service providers are responding to the iPhone 16 and what to expect from Apple Intelligence.
iOS 18 has arrived
The new iOS 18 software upgrade launched Monday, and it is available for iPhones all the way back to the XS and XR, reported The Wall Street Journal. Apple Intelligence won't be available until next month with the iOS 18.1 update and it will only be accessible with an iPhone 16.
With the iOS 18 update comes a lot more flexibility in positioning apps without the traditional bounds of the home screen grid. Users can also adjust the size and color of the app icons. There's quite a bit more customizability in the control center and lock screen so users can easily add and remove controls to apps such as the calculator, notes, voice memos and more.
Within Apple's messaging app, users can now schedule texts and select animation options to deliver messages with a shake, nod or explosion, among other effects.
Notably, the update includes the addition of Rich Communication Services (RCS) messaging, "which should help improve communication with Android users," reported The Verge. Now iPhone and Android users will be able to share high-res photos and videos, view typing indicators and share read receipts. But, Android messages will still appear in green bubbles to iPhone users.
Device promotions on par with last year
For those looking to upgrade to the iPhone 16, unfortunately, this year's iPhone device promotions from US wireless carriers aren't any more "lucrative" than last year's, reported research group MoffettNathanson in a newsletter.
"As we've chronicled again and again, upgrade cycles are good for Apple but they're bad for the carriers," according to MoffettNathanson. "That the carriers aren't sweetening the pot further suggests not only that they are comfortable standing pat but also that they don't foresee an organically larger cycle that forces their hand."
However, upgrade cycles are driven more by consumer interest than carrier promotions, explained the analysts: "To be sure, carrier promotions are but one piece of the puzzle; upgrade cycles are mostly driven by consumer pull, not carrier push."
That being said, there are some good deals to be had. Verizon has become more aggressive in its retention offers, said MoffettNathanson. Cable carriers also have some significant subsidy offers, in particular from Comcast for new customers joining its premium service plan. Comcast is providing $1,000 in the form of 24 monthly bill credits with the trade-in of eligible devices.
"The very fact that promotions haven't gotten meaningfully more aggressive, however, is telling," said MoffettNathanson. "If the carriers believed that a consumer pull-driven cycle were in the offing, they likely would have positioned themselves more aggressively in anticipation."
Here's a look at some of the offers from the three major wireless carriers:
Verizon is advertising up to $1,000 off the iPhone 16 Pro or Pro Max, provided by 36 monthly bill credits, for premium Unlimited Ultimate wireless plan customers trading in any model iPhone in any condition.
T-Mobile will provide up to $1,000 off any iPhone 16 model via 24 monthly bill credits with trade-ins of an iPhone 11 Pro or better.
AT&T will take $1,000 off the iPhone 16 Pro or Pro Max through 36 monthly bill credits to all customers with trade-ins of an iPhone 12 or better. This offer is available regardless of the customer's plan, whether they're adding a new line or upgrading an existing one, said MoffettNathanson.
What to expect from Apple Intelligence
For those that decide to take the leap and upgrade to the iPhone 16, next month they'll be able to utilize Apple's AI features via Apple Intelligence.
The AI features are supported by the new A18 chip, and Pro versions of the iPhone 16 have a faster processor – the A18 Pro, according to WSJ. The A18 includes a 16-core neural engine "that is optimized for running large generative models. This neural engine is up to two times faster for machine learning," said Sribalan Santhanam, VP of the silicon engineering group at Apple, during the iPhone 16 launch.
Apple's new AI capabilities will include an updated version of Siri "that can speak more freely and use personal context to deliver better responses," reported WSJ. It will also include new editing tools to summarize and provide suggested edits for apps such as Notes, Mail and Pages. Users will be able to record and transcribe phone calls.
Apple Intelligence's Visual Intelligence feature means users can take a picture of a restaurant, for example, and the iPhone will pull up corresponding information such as reviews or how to make a reservation. Users can also take pictures of items they're interested in and the iPhone will search for purchasing options, or take a picture of a document to get research assistance from ChatGPT.
However, Visual Intelligence won't yet be available with the beta version of Apple Intelligence launched in October. The full suite of Apple Intelligence features will be available in March 2025, reported Forbes.
Not every iPhone 16 owner will have access to Apple Intelligence. In Europe, iPhone 16 users won't be able to access Apple Intelligence due to the impact of the European Union's Digital Markets Act, reported Forbes. Apple won't release the software to the European market "without clear guidance from the regulatory authorities," said Forbes. Apple would need to open up its iOS to work with other GenAI software to meet the regulatory requirements of the Digital Markets Act (DMA).
"The likes of Google's Gemini AI and Samsung's Galaxy AI can push ahead, gathering mountains of anonymized user data to improve the product as well as offering continual updates for the existing software while working to release the second-generation software," according to Forbes. "Apple can do none of this, at least with its European user base."
Meanwhile, investors will be closely watching the US market for the iPhone 16 as the US is often an indicator as to how things will play out in the global market, explained MoffettNathanson.
"For Apple investors, the US market is more important this year than ever before," according to MoffettNathanson. "Hopes for an accelerated iPhone upgrade cycle rest on AI (ahem, that's Apple Intelligence), and even the early (simple) bits of Apple's AI will only be made available, for now, in the US."
You May Also Like
