Why Apple's iPhone 16 just is 'not hitting home' with consumers

Apple’s (AAPL) newest iPhone lineup is now in stores. However, the release of the iPhone 16 comes without the tech giant’s AI features — dubbed Apple Intelligence — which is slated for an October rollout. “We're very much in the early days of AI, a lot of questions by consumers around the benefits” says TECHnalysis Research President and Chief Analyst Bob O'Donnell. O'Donnell tells Yahoo Finance that there are some “fundamental challenges” right now in Apple's push for a device upgrade cycle, affirming that he is still a big believer in AI in the long run. As for the smartphone business overall? O'Donnell says it has stalled as consumers wait longer to upgrade their smartphones: "The hope was that these AI features from Apple would be that trigger for change, but it doesn't look like that's going to happen for a while." For more expert insight and the latest market action, click here to watch this full episode of Market Domination.
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[SirGriefALot]

Money is tight, people aren't looking for a reason to spend a grand right now.

[ThraxMan]

For myself personally, I have the 15 Pro Max and I didn’t feel the need to upgrade. I think some people are the same. The build quality is great and they can last for several years. These phones aren’t exactly cheap to buy a new one every single year.

[Morme]

Consumer AI is the next 3d tv.
Yeah, it’s cool but I don’t really need it

[michaelh]

If you’re upgrading every single year, yea ok, but if you’re upgrading every few years these can be huge upgrades.

[Alwong]

Smart phones are so expensive now that I only upgrade every four years or so.

[jarnee]

Yeah, the Chinese market for Apple has collapsed. No money no innovation. Rotten Apples don't sell too well.

[XXtheJUMPoffXX]

iPhone functionality peaked years ago so everyone’s current phone is plenty “good enough”

[brokeduece]

Apple used to be innovative. 10+ years ago, anything Apple related was the latest and greatest of tech. Now Apple just play with fancy words

[B-MARTINEZ]

IPhones users are finally waking up...Same tech with tomorrow prices...

[G-Man-half-life]

I wish Apple would go back to their roots back when Apple wasn’t scared of trying new things and developing new technologies that has never been attempted before basically I’m talking about how Apple used to be back in the 1970’s and 1980’s back then Apple was truly a pioneer in technology… the 1970’s and 1980’s was the golden age for Apple.

[reimaks]

I think many analysts are missing the point. Literally everyone, yes everyone, I know, that uses Apple devices, doesn’t care about a cool new iPhone. The ecosystem (the walled-in garden), the seamless integration, is what matters. The day-to-day tasks that I want done are much more easily accomplished on an order iPhone/Mac/watch/TV/etc., that on the newest devices form other manufacturers/service providers. Samsung, Microsoft, Google etc. just cannot match Apple in that respect. The fact that a command/application will open a fraction of a second faster on some hot new device does not matter, if I have to string 5 steps together to accomplish a task. I’d rather have a very good device and accomplish my task in 2 steps. This is why Apple services revenues are growing at a faster pace.

[nawwk]

iPhone 16 is a upgrade from iPhone 15.

[saimadhavarao]

When you are selling a phone on the promise of something in the future, it's a recipe for disaster. If you still don't get it out of the box, the iPhone 16 doesn't come with Apple intelligence. Btw this is what Marques Brownlee has told to avoid in the past, I bet he never imagined Apple would pull this stunt one day. 😂😂😂

[LiquidChamploo]

Finally upgraded from the iPhone 11, definitely a huge upgrade for me.
I think Apple users are finally starting to realize you don’t *need the newest model phones anymore.
Unfortunately for Apple, this realization is happening as they tie extra software features to their latest devices .. Delayed features at that.

[syedchain]

Maybe the price doesn’t justify the 60Hz display, knowing how even mid-rangers of other brands sport 120Hz ones. Or maybe this is exactly what Apple wants to push more sales of the pro models.

[StoneColdSteveAustin.]

I am from iPhone 12 Pro Max to 16 pro max
Worth the upgrade after 5 years

[anandnairkollam]

It is not the same chip. Higher models have the pro version.

[drkvenger]

Unless you’re upgrading from an iPhone 11 or older, it’s hard to justify paying $1, 000-$1, 200 for a design that hasn’t changed much since the 12.

[AkashS]

In India, you can see thousands of people are waiting outside of their store. But that's paid PR stunt... One of the guy leaked on media that's it's all PR and they are getting paid for this drama

[SteviesMum]

Agree Pixel 9 Pro Fold is the coolest phone right now.. time to switch !!!