Apple is rumored to be readying generative AI features to showcase as soon as WWDC 2024, but a new analysis from Haitong International Securities’s Jeff Pu suggests that the company could be planning even more exclusive AI features for the upcoming iPhone 16.

In an investor note seen by Supercharged, Pu claims that Apple will begin showcasing its AI efforts with WWDC 2024, something that CEO Tim Cook pretty much confirmed yesterday during the fiscal Q1 2024 earnings call. However, Pu believes that the scope of generative AI features heading to iOS 18 and the iPhone 16 will be limited and below market expectations with bigger changes tipped to come later than expected.

The iPhone 16 lineup could come with exclusive AI features thanks to big upgrades heading to the Neural Engine on the A18 Pro and significantly upgraded microphones for an LLM-powered Siri, a sentiment shared earlier by analyst Ming-Chi Kuo. Apple already brought a massive upgrade to the A17 Pro‘s Neural Engine with the iPhone 15 Pro, but the company’s desire to implement on-device LLMs could require more advanced hardware exclusive to the iPhone 16.

Apple will likely reach a more mature AI ecosystem next year with the iPhone 17, Pu adds, which will also span the company’s services. Kuo earlier this week also claimed that the company’s AI efforts won’t truly take off till next year’s iPhone lineup, which will negatively affect the device’s shipments this year as the iPhone 16 is said to lack any meaningful design changes. This will put Apple at a further disadvantage to its competitors like Samsung, which recently showed off a suite of AI features with its Galaxy S24 lineup.

Generative AI features rumored to be heading to iOS 18 are said to span every part of the system. including apps and services like Siri, Messages, Xcode, Apple Music, iWork, and more. Apple is also exploring licensing deals with major publishers around the world to acquire rights to their archives as a stream of training data for its LLM models.