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Some LLMs can run locally, but are brutally slow with small context windows.
Apple is likely waiting until you can run a really good model on device (i.e. iOS), which makes sense to me. It's not like they're losing customers over this right now.
And they just postponed AI-Siri to 2026 after promising it for iPhone 16. I seriously don't get how it can be that hard. Small model trained on various app API's, a checker model that double checks, an approve this action button. Not that hard.