Apple’s new budget iPad skips AI features despite company-wide intelligence push

Apple’s recent iPad launch breaks its consistent pattern of equipping new products with AI capabilities, despite the company’s year-long push to make Apple Intelligence a central selling point across its product lineup. The decision to release an A16-powered base iPad without AI support creates a confusing dichotomy with Apple’s earlier discontinuation of the iPhone SE, which was seemingly replaced by the pricier, AI-capable iPhone 16e. This inconsistent strategy raises questions about Apple’s device prioritization and suggests cost considerations may sometimes outweigh AI integration for budget-focused products.

The big picture: Apple launched two new iPads today, but only the M3 iPad Air supports Apple Intelligence, while the new A16-powered base iPad lacks this capability.

• This marks a deviation from Apple’s recent trend of ensuring all new products support its AI features, following updates to the iPhone 16 lineup, Macs, iPad Pro, iPad Air, and iPad mini.
• The base iPad’s $349 price point appears to have prioritized affordability over AI compatibility, as it uses the A16 chip rather than the AI-capable A17 Pro or newer.

Why this matters: The A16 iPad’s lack of AI support conflicts with Apple’s strategy for the iPhone lineup, where it discontinued the budget iPhone SE in favor of the pricier, AI-capable iPhone 16e.

• Apple could have theoretically maintained the iPhone SE as a budget option without AI support (similar to the new base iPad strategy) while still introducing the iPhone 16e.
• The contrasting approaches create confusion about Apple’s AI implementation philosophy across its product ecosystem.

Reading between the lines: Cost considerations appear to be driving inconsistent AI implementation decisions across Apple’s product lineup.

• For the entry iPad, keeping the price low at $349 apparently justified omitting Apple Intelligence support.
• For smartphones, Apple may have determined $400 is too low a price point for iPhones in 2025, especially if the iPhone 17 lineup will see price increases.

Industry implications: Apple’s selective AI implementation creates an unusual segmentation in its ecosystem.

• Educational markets, which heavily utilize iPads and could benefit from AI features like Writing Tools and ChatGPT integration, are notably excluded from these capabilities on the entry-level model.
• These inconsistencies suggest Apple is still developing its long-term strategy for balancing AI capabilities with price positioning across its product lineup.