Apple’s AI-powered Siri faces adoption hurdles from aging iPhone base

Summary

Apple’s enhanced Siri and broader Apple Intelligence platform may face slower adoption than expected because a large portion of the company’s installed iPhone base lacks the hardware needed to support advanced AI features.

According to Morgan Stanley, more than 1.3 billion iPhones are unable to run Apple’s most advanced AI-powered Siri capabilities, creating a significant challenge for the company’s long-term artificial intelligence strategy.

CUPERTINO, June 9, 2026 — Apple’s efforts to bring advanced artificial intelligence features to Siri could face significant near-term adoption constraints due to hardware limitations across much of its global iPhone installed base, according to a research note from Morgan Stanley.

The assessment follows announcements at Apple’s Worldwide Developers Conference (WWDC), where the company showcased new Apple Intelligence capabilities and continued development of a more personalized, context-aware Siri experience.

Morgan Stanley analyst Erik Woodring estimated that more than 850 million active iPhones are unable to support Apple Intelligence features, while over 1.3 billion devices cannot run the most advanced AI-powered Siri capabilities expected in future releases.

Despite these limitations, Morgan Stanley raised its price target on Apple shares to $360 from $330 and maintained its Overweight rating, arguing that AI-driven hardware upgrades could become a major long-term growth catalyst.

Hardware and regulatory challenges

According to Morgan Stanley, one of the primary barriers to adoption is the significant processing power and memory required to run advanced AI models directly on devices.

The brokerage estimates that future high-end Siri capabilities may require approximately 12GB of memory, reflecting Apple’s strategy of performing many AI tasks on-device to preserve user privacy and reduce dependence on cloud computing.

However, analysts noted that hardware limitations are only part of the challenge.

Apple also continues to face regulatory and approval hurdles in several markets. Some Apple Intelligence features have encountered additional compliance requirements in parts of Europe, while the company is still working to secure approvals for broader AI feature deployment in China.

Together, Europe and China account for a substantial portion of Apple’s annual iPhone sales, making those markets critical to the company’s AI rollout strategy.

AI seen as a long-term upgrade catalyst

While highlighting near-term adoption constraints, Morgan Stanley said artificial intelligence could ultimately drive a significant multi-year upgrade cycle as consumers seek access to more capable digital assistants and personalized software experiences.

As Apple expands AI-powered features across its ecosystem, users with older devices may increasingly consider upgrading to newer hardware that supports Apple Intelligence.

Wall Street analysts offered mixed reactions following WWDC.

Bank of America maintained a Buy rating on Apple and reiterated a $380 price target, citing the long-term potential of Apple’s AI strategy.

Barclays maintained an Underweight rating and a $253 price target, arguing that hardware limitations and regulatory uncertainties could slow the pace of AI adoption.

Despite differing views, analysts broadly agree that artificial intelligence will play a central role in Apple’s future product strategy and revenue growth.

Why this matters

• Large installed base limitations: Hundreds of millions of active iPhones cannot support Apple Intelligence features, limiting near-term user adoption.
• Hardware upgrade opportunity: AI capabilities could encourage consumers to replace older devices sooner than planned.
• Regulatory complexity: Ongoing approval and compliance requirements in Europe and China could affect the pace of global feature rollouts.
• On-device AI strategy: Apple’s focus on privacy-centric processing requires increasingly powerful hardware compared with cloud-based approaches.
• Long-term revenue driver: Analysts view AI-enabled devices as a potential catalyst for the next major iPhone upgrade cycle.

FAQs

Q1: Why can’t many older iPhones run Apple’s AI features?

Apple Intelligence relies on advanced processors and memory resources that are unavailable in many older iPhone models.

Q2: How many devices are affected?

Morgan Stanley estimates that more than 850 million active iPhones cannot support Apple Intelligence, while over 1.3 billion devices are unable to run the most advanced AI-powered Siri features.

Q3: What is Apple Intelligence?

Apple Intelligence is Apple’s artificial intelligence platform that powers features such as writing assistance, image generation, notification summaries and enhanced Siri capabilities.

Q4: Are Apple’s AI features available worldwide?

Availability varies by market. Some features face additional regulatory requirements in Europe, while broader deployment in China remains subject to local approvals.

Q5: What is Morgan Stanley’s outlook for Apple?

Morgan Stanley maintained its Overweight rating on Apple and raised its price target to $360 from $330, citing the long-term upgrade potential created by AI-powered devices.