Apple's Artificial Intelligence Revolutionizing Future iPhone Sales
- Analysts project that Apple's artificial intelligence features will drive consumers to upgrade their iPhones, leading to increased future sales.
- The rollout of iOS 18 in September will empower users to leverage AI for various tasks.
- To utilize Apple Intelligence on iPhones, users will need to upgrade to at least the high-end iPhone 15 Pro.
Apple announced the incorporation of "Apple Intelligence" into eligible iPhones, iPads, and Mac devices, aiming to deliver useful and relevant intelligence. Analysts project that this move will drive consumers to seek iPhone upgrades and boost future sales. The AI features will be available on iPhone 15 Pro/Pro Max or iPad & Macs with M1 or better, potentially sparking a strong device upgrade demand starting with iPhone 16. Apple's AI strategy is expected to leverage its installed base for personalization and large language models, changing Cupertino's growth trajectory. The company's various upcoming features are anticipated to prompt more customers to upgrade their devices and could lead to direct AI monetization opportunities in the future. Apple's net sales of iPhones over the first two quarters of 2024 amounted to nearly $115.67 billion, with a slight decline compared to the previous fiscal year. The tech giant has entered the AI race with updates to its iPhone software and a deal with OpenAI to add ChatGPT to smartphones, enabling users to utilize AI-powered technology for various tasks. Apple's AI products will focus on integrating AI features into different programs across its devices and enhancing its Siri voice assistant. The company's new AI-writing tools will offer suggestions for various tasks like blog posts and meeting minutes across different apps. Apple's new AI features will be integrated into apps like Messages and Notes, allowing users to create custom emojis and access satellite text messaging. Apple Intelligence will be supported on devices running the M1 chip, such as the iPad Air, iPad Pro, and Macs, but will only be available on the 2023 iPhone 15 Pro Max and iPhone 15 Pro, not the regular iPhone 15. This move could drive new iPhone upgrades in the upcoming fall. Apple's announcement of Apple Intelligence marks its full entry into artificial intelligence, with a focus on generative AI. The company's AI technology will come with added privacy features, setting it apart from competitors.