Apple’s (AAPL) newest iPhone lineup is now in stores. However, the release of the iPhone 16 comes without the tech giant’s AI features — dubbed Apple Intelligence — which is slated for an October rollout.

“We're very much in the early days of AI, a lot of questions by consumers around the benefits” says TECHnalysis Research President and Chief Analyst Bob O'Donnell.

O'Donnell tells Yahoo Finance that there are some “fundamental challenges” right now in Apple's push for a device upgrade cycle, affirming that he is still a big believer in AI in the long run.

As for the smartphone business overall? O'Donnell says it has stalled as consumers wait longer to upgrade their smartphones: "The hope was that these AI features from Apple would be that trigger for change, but it doesn't look like that's going to happen for a while."

For more expert insight and the latest market action, click here to watch this full episode of Market Domination.

This post was written by Ivana Freitas.