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Thank you safari!
I suspect they don't have as much as you'd imagine. Stronger privacy means they have less data, and the data they have is less useful, and their legal teams will restrict things the data can be used for.
I think that's why Apple Intelligence is bad. They built it on mostly synthetic data.
You are correct about the culture of privacy at Apple and that is the awesome thing about Apple. The big "Allow Apple to collect anonymous data to help improve..." screen you get when setting up your device is the master opt-out switch where you can turn all data collection off.
For those that leave it on I think Apple have become very good about finding means to acquire user engagement data in a privacy-compliant way. For starters, by identifying user data with a cohort identifier when they can (which will cluster hundreds or thousands of user's data into arbitrary groups). Or if specific user engagement is wanted in order to see if usage patterns change they might create a rotating random identifier (that is regenerated to a new random identifier every 11 months so as to not build up an identifying profile).
I think the bigger question for me is if they have the tools and teams in place that can take full advantage of that data to improve user experience. Or if it is just a firehose of data points that are left instead to just curdle in a large vat.
Probably not an easy task at all.
I'm still disappointed by what I'd consider to be simple stuff, like hands-free operation of my phone while driving, or even just simple instructions on operating the phone without needing to touch it (let alone look at it). I'm having trouble imagining what the product owners at Apple are actually expecting it to help us with - do they use it in their daily lives?
A family member is blind, and in many ways digital assistants and AI voice control have been a godsend, and Apple Intelligence should have been enabling in so many ways. Instead it's an exercise in frustration, advertising hope where there is nope, as well as being all but hostile to blind users (Apple's is the best of a bad bunch). Arguably the switch from tactile buttons to touch screen slabs has removed more autonomy for my relative than AI has added.
It's no wonder that Apple have found that people see no value in Apple Intelligence, then, because it doesn't add any practical value.