Apple has decided it will avoid the issue by refusing to allow its generative AI software to be installed on a purchased iPhone. It’s a drastic choice that will be seen as a downgrade by Apple’s dedicated community and leave European iPhones at a disadvantage compared to the Android-based competition.

Shares of Apple fell nearly 3% on Monday after some analysts said delivery times for the new iPhone 16 Pro models indicated weaker-than-expected demand, possibly due to the delayed rollout of key artificial intelligence features.