Apple Inc (NASDAQ:AAPL, ETR:APC)’s flagship artificial intelligence (AI) launch has underwhelmed, leaving the technology giant in need of a “killer” use case to drive iPhone demand, UBS analysts say.
Based on tracking of wait times for new iPhones, UBS said in a note that there had been “no notable uptick in demand” following the release of Apple Intelligence.
This rolled out in US English to iPhone 15s and 16s on Monday, bringing the likes of generative AI writing and Siri voice control tools to Apple products.
However, UBS noted data on iPhone availability continued to suggest “demand that is somewhat softer relative to last year [...] despite the launch”.
Wait times for the iPhone 16 Pro Max sat at 12 days following the AI rollout, against 17 days for last year’s 15 model.
Though these were at six and two days for the iPhone 16 Pro and Plus models, compared to four and no days for last year’s counterparts, UBS said the figures failed to reflect a “material increase” following the Apple Intelligence launch.
“Apple still lacks a ‘killer’ AI use case that can drive smartphone demand in our view,” analysts said, with wait times in China said to have continued to fall in the meantime.
“Given the relative ‘newness’ of the new iOS and AI feature set, we believe there is a small probability wait time data could change a shade going forward if consumers are more constructive on the features but it is unlikely to materially impact the December quarter.”
UBS reiterated a ‘neutral’ rating for Apple and share price target of $236, with the technology giant set to update on its third-quarter trading on Thursday.
Shares fell 1.2% to $230.81 on Wednesday.