iOS 18.1 Debuts Apple Intelligence Amidst Industry Skepticism

iOS 18.1 is set to launch this coming week, introducing Apple Intelligence, an AI-powered suite exclusive to recent iPhone models. This update is expected to encourage upgrades, particularly to the iPhone 16 models and iPhone 15 Pro series, the only devices currently compatible with the full range of new features. Yet, some industry analysts, like Bloomberg’s Mark Gurman, argue that Apple’s AI advancements still lag behind competitors, tempering expectations for immediate sales spikes based solely on these new capabilities. Gurman contends that the iPhone 16’s success may stem more from hardware advancements than from Apple Intelligence.

Analyst Ming-Chi Kuo echoes similar sentiments, noting recent production cuts on non-Pro models and asserting that meaningful iPhone growth requires further hardware improvements beyond Apple Intelligence alone. Although Kuo is optimistic about Apple’s potential in on-device AI and the eventual popularity of Apple Intelligence as a paid service, he remains cautious about short-term sales growth solely driven by these AI features.

iOS 18.1 will introduce limited but notable Apple Intelligence features, primarily focusing on writing tools and productivity enhancements. Users can expect text editing tools with features like proofreading, tone adjustments, and summarization across various apps, including Safari, Mail, and Notes. In Mail, updates include prioritized inbox management and smart replies. Photos benefits from natural language search and a “Clean Up” tool that removes unwanted objects from images, a feature comparable to Google’s Magic Eraser. Siri, too, sees early modifications, such as mid-command interruption, broader troubleshooting capabilities, and a “type-to-Siri” function.

While these tools enhance certain functionalities, they represent incremental improvements rather than groundbreaking innovations. Some features, like text summarization and text-to-type Siri, offer utility, but others may require further refinement.

Despite tempered expectations around Apple Intelligence, iPhone 16 models remain attractive for other reasons, such as the enhanced A18 chipset and camera upgrades in Pro models, which maintain Apple’s competitive edge in smartphone photography. As a result, Apple Intelligence functions more as a complementary feature rather than a primary reason for upgrading. According to IDC’s Nabila Popal, iPhone growth in the upcoming holiday quarter will likely come from users upgrading after the standard 3-4 year lifecycle, especially those with older iPhones like the 13 or 12 models.

Looking forward, iOS 18.2, already in beta, will further expand Apple Intelligence with Visual Intelligence—allowing iPhone 16 users to extract information by pointing the camera at objects, similar to Google Lens. Other features include “Image Playground” for AI-generated visuals and “Genmoji,” which enables custom emoji creation via text prompts. ChatGPT integration into Siri is also anticipated.

Analysts like Avi Greengart of Techsponential emphasize that Apple’s immediate challenge is to demonstrate the practical benefits of Apple Intelligence in day-to-day use. The AI-driven summaries in emails and messages may provide users with visible, impactful enhancements, but Apple must leverage its privacy advantages and cross-app actions to outpace competitors in the AI space. Looking to the future, Popal suggests Siri’s evolution into a more conversational assistant could serve as the significant driver for future upgrades. Apple’s focus, she believes, will center on developing Siri’s capabilities to better serve users in a way that mimics human interaction, making Apple Intelligence a more compelling reason for early adoption in the coming years.