The Two Words Apple Never Mentioned at its iPhone 16 Event

At its recent iPhone 16 unveiling, Apple introduced a host of new features powered by artificial intelligence but conspicuously avoided using the term “AI” throughout the two-hour event. Instead, CEO Tim Cook and other presenters repeatedly referred to “intelligent” features, marking a strategic choice by the tech giant to distance itself from the AI branding that has garnered mixed reactions from the public.

The iPhone 16, priced at $1,200 for the Pro Max version, boasts a range of AI-driven tools, including a more intuitive Siri, customizable emojis, and an image recognition system capable of identifying dog breeds. However, despite these enhancements, the AI features appear to be more of a convenience than a necessity, unlikely to prompt a massive surge in upgrades solely based on artificial intelligence alone.

While AI is undeniably at the core of the new phone’s innovations, Apple’s careful avoidance of the term speaks to a broader trend: consumers remain wary of AI-powered products. A recent study in the Journal of Hospitality Marketing & Management even found that labelling products as “AI-powered” reduced buyers’ intentions to purchase them. This aligns with the growing scepticism surrounding the technology, as many find AI-generated outputs unreliable or untrustworthy.

Despite the lukewarm reception to AI in general, analysts like Gene Munster from Deepwater Asset Management predict that the iPhone 16’s sales will still surpass expectations, fueled by brand loyalty and the natural upgrade cycle of older phones. Munster expects a “super cycle” of sales in the coming year as users gravitate toward the new devices, even if AI remains more of a subtle backdrop than the star attraction.

Apple’s cautious approach—emphasizing “intelligent” features rather than openly branding them as AI—illustrates its understanding of customer sentiment. By weaving AI into the fabric of its products without explicitly calling attention to it, Apple hopes to integrate these advancements smoothly, avoiding the pitfalls that have plagued other tech companies when marketing AI.

As the company continues to balance innovation with consumer trust, Apple appears to be playing the long game, betting that customers will eventually embrace AI as part of their everyday experience—whether they realize it or not.