Apple's AI Dreams DELAYED Amidst EU Tightening (Investors Beware?)

Well, folks, it looks like Apple’s grand plan to make Siri slightly less useless just hit a speed bump. According to reports, the tech giant is delaying the rollout of its much-anticipated Apple Intelligence features for its new iPhone and iPad software. Whadda bummer… 

(Source: Bloomberg) 

As we all know Apple was all set to introduce its new AI features called Apple Intelligence with the launch of iOS 18 and iPadOS 18 in September. But now, thanks to the EU’s annoying tech regulations, it looks like Apple is syncing its delay calendar with Elon Musk’s Robotaxi debut for October. 

(Source: Giphy) 

Now of course according to Bloomberg it’s not all pointing the fingers at the EU. Apple wants to ensure a smooth consumer release and address any potential bugs. They’re planning to make Apple Intelligence available to developers for early testing with iOS 18.1 and iPadOS 18.1 betas. 

(Source: Giphy) 

So on the surface, they want to make sure they don't pull a Meta and release something buggier than a summer picnic. Which is smart, but still, it’s a bummer for those of us who were eagerly waiting to boss Siri around with even more sophisticated commands.

(Source: Medium) 

With that said though, even with the extra precautions, the EU’s role in this delay is somewhat big. Everyone knows their AI regulations are becoming tighter than Tim Cook’s turtlenecks, but Apple has already had to push back the launch of three new AI features in Europe because of the stringent tech rules. 

(Source: Reuters) 

These regulations require Apple to ensure that rival products and services can function seamlessly with its devices. So, in a nutshell, Apple is stuck in a regulatory quagmire, that isn’t exactly great news for investors. 

Apple’s AI push was supposed to be a big deal, helping to drive sales for the upcoming iPhone 16 models. Dan Ives of Wedbush Securities even said that the AI upgrade could represent a “golden upgrade cycle for Cupertino.” 

(Source: Business Insider) 

He estimated that AI tech could add $30 to $40 per share, especially since the integration is supposed to bring a slew of new features like prioritization of notifications, web page and voice note summaries, writing tools, a revamped Siri, and integration of OpenAI’s ChatGPT. 

(Source: Hindu Times) 

But now with this delay, the first batch of 90 million new iPhone 16s might ship without these features. So as we can see, even with the optimism of AI within Apple’s new iPhones, the gains from the new feature releases may take a bit longer to materialize.

(Source: Giphy) 

To add insult to injury, Apple’s struggles aren’t just limited to the EU. They’ve been having a tough time in China, too. Competitors like Vivo, Huawei, and Xiaomi are giving Apple a run for its money when it comes to AI integration. So the hope was if Apple could put these AI updates into the hands of Chinese users, it could help them regain some lost ground. But again, delays aren’t helping their cause. 

(Source: New York Times) 

Surprisingly enough though, upon news of the delays, Apple is still sitting nice at +0.48% on the day. 

Now of course, we'll see if the bullish sentiment continues in the short-term, especially since Apple’s delay in rolling out its AI features is a bit of a downer for both users and investors. 

But hey, look on the bright side - at least when these features finally drop, they might actually work. Until then, we'll just have to keep talking to Siri like we're explaining rocket science to a golden retriever… *sigh*

(Source: X) 

Stocks.News holds positions in Apple and Meta Platforms as mentioned in the article.