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Apple invests heavily to develop & release new AI Intelligence feature on time

The company is investing heavily in AI development and release
Last Updated on August 2, 2024
apple intelligence increases capex
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Recently, we reported on the fact that Apple’s AI Intelligence could be arriving alongside the upcoming iOS 18 update – well, that seems to be the case, as some of Apple’s new AI features are part of the company’s latest 18.1 developer beta.

For a while now, the upcoming iOS 18 upgrade and Apple Intelligence features have been creating a buzz. The next OS update is all set to bring a bunch of new AI features to iPhones, iPads, and other Apple devices – including the increasingly anticipated AI Intelligence.  

Considering that the much-awaited iOS 18 will be rolled out alongside the iPhone 16 series, it doesn’t come as a surprise that Apple has been investing heavily in generative AI.

While talking to CNBC, Tim Cook, the CEO of Apple, revealed that they have been pouring additional resources into Apple Intelligence to ensure the new AI-driven features are ready on time. 

During this, Cook mentioned that the company has a hybrid approach and the partner’s capital expenditure was included in Apple’s expenses. Due to this, the company’s YoY expenditure will be increased in this quarter’s results. 

Certainly embedded in our results this quarter is an increase year over year in the amount we’re spending for AI and Apple intelligence,” Tim Cook said in the interview. The exact amount of investments made into this AI is not yet known. 

In the same CNBC report, it was mentioned that Apple’s overall revenue grew 5%, and iPhones remained the most important product, with its sales contributing 46% this quarter. However, iPads showed significant growth this quarter, with 24% Y-o-Y accounting for $7.16 billion in sales.

(Image source: Apple Inc)

iOS 18.1 is likely to be released on time

Cook did not mention whether the inclusion of artificial intelligence and iPhone 16’s out-of-the-box generative AI features will have any effect on sales.

At the moment, the first beta of iOS 18.1 has been released to developers. As per the release notes, some AI features like writing tools, custom stories from memories, a new appearance for Siri, and a few other features are included in the beta. Apple has not shared any information on when this beta will be released to the public. 

In any case, we won’t be seeing Apple Intelligence features until the iOS 18.1 update is rolled out. The upcoming OS update is expected sometime around the fall. Earlier last week, we speculated that Apple still has enough time to add some AI features, and now it looks like the release will be on time.

Nitisha is a content writer and editor and she has over 3 years of experience in writing about video games and tech.