I have a hard time believing this since everything Apple has been releasing in the AI space points towards running models locally.
However I feel like outside of a few niches like HN, people don’t give a damn about privacy (for example, the company I work for has a website with millions of daily unique visitors; GDPR consent rates are usually around 98%).
So if other phones use models running on the cloud and they’re higher quality than the local running ones in iPhones (which will prob be smaller) that might be more important to the average user.