Apple’s AI Upgrades to Miss Initial Launch of iOS 18 Overhaul
Jul 29, 2024
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Mark Gurman, Chief Technology Correspondent for Bloomberg News, discusses the delayed launch of Apple’s AI features, giving the company more time to resolve issues. He also highlights the potential impact of this on Apple's sales, especially in the competitive Chinese market. Meanwhile, Mike Halen, Senior Restaurant Analyst at Bloomberg Intelligence, analyzes McDonald's recent earnings dip amid a global economic slowdown, and discusses strategies for attracting customers back to fast food.
Apple's delayed rollout of AI features in iOS 18.1 provides extra time for bug fixes and enhancing user experience.
McDonald's faces a decline in restaurant traffic due to weakened consumer spending, prompting promotional strategies to boost sales.
The introduction of iPhone 15's enhanced hardware, including a dedicated camera button, is expected to drive consumer interest despite design stability.
Deep dives
Lenovo Pro: Supporting Small Businesses
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Apple's Delayed AI Features
Apple's upcoming AI features, initially expected to launch with iOS 18 and iPadOS 18, will now be rolled out in October as part of iOS 18.1, allowing the company extra time to resolve bugs and enhance the user experience. Although this delay is somewhat unusual for Apple, it is considered manageable and should not significantly impact sales of new devices. Early beta testing has commenced for developers, who can explore limited features like email summaries and a new Siri interface. The gradual introduction of these features is anticipated to maintain consumer interest, potentially boosting sales later in the year.
iOS 18 and Its New Features
iOS 18 introduces several compelling features despite the absence of Apple Intelligence at launch. Users will enjoy a dark mode for app icons that allows personalization and a revamped Photos app with enhanced curation capabilities. Other new features include a hiking view in Maps and expanded emoji options for message responses, improving overall user engagement. These upgrades underscore Apple's commitment to user experience, even as attention remains on the upcoming AI functionalities.
Apple's Sales Strategy and Hardware Innovations
Sales of the upcoming iPhone 15 are expected to be bolstered by new hardware, particularly a dedicated camera capture button, which mimics a DSLR experience. Key features like the faster A18 chip and improved displays are also projected to attract customers. Although the iPhone 15 may not present a complete redesign, these enhancements, alongside the eventual rollout of Apple Intelligence, are likely to drive consumer interest. Repeat sales bumps are expected around both the initial launch and the later introduction of the new AI capabilities.
Consumer Behavior and Market Trends
Recent trends indicate a decline in consumer spending at restaurants, reflecting broader economic challenges faced by low-income individuals. This decline suggests that discretionary spending on dining out is often the first area affected during economic downturns. Companies like McDonald's are responding to this trend with promotional strategies such as a $5 meal deal, aimed at driving traffic despite lower sales figures. Observations on consumer sentiment hint at a cautious outlook for the economy, with potential long-term effects on the restaurant industry if low-income consumer pressures continue.
Watch Carol and Tim LIVE every day on YouTube: http://bit.ly/3vTiACF. Bloomberg News Chief Technology Correspondent Mark Gurman discusses Apple’s upcoming artificial intelligence features arriving later than anticipated, missing the initial launch of its upcoming iPhone and iPad software overhauls but giving the company more time to fix bugs. Bloomberg Intelligence Senior Restaurant Analyst Mike Halen breaks down McDonald's earnings offset by a traffic decline due to weaker consumer spending. Rob Nichols, President of the American Bankers Association, shares his thoughts on the banking sector and regulatory challenges. Jon Vander Ark, CEO of Republic Services, talks earnings and the transition from garbage industry to environmental services. And we Drive to the Close with Cheryl Smith, Portfolio Manager at Trillium Asset Management. Hosts: Tim Stenovec and Emily Graffeo. Producer: Paul Brennan.