Last year, Apple unveiled Apple Intelligence, its suite of AI tools designed to function on-device. To take full advantage of these features, users need the latest hardware, including iPhone 15 Pro and newer models. However, analyst Ming-Chi Kuo suggests that the introduction of Apple Intelligence has not significantly boosted iPhone sales.
Consumers Not Persuaded to Purchase New iPhone Due to Apple Intelligence
Kuo shared in a recent blog update that Apple’s strategy to highlight Apple Intelligence has not translated into increased sales for the iPhone. His insights from supply chain sources indicate that many existing iPhone users are not inclined to upgrade solely for the AI capabilities. A SellCell survey conducted last month showed that a majority perceive little to no benefit from Apple Intelligence at this stage.
The analyst pointed out that Apple struggled to maintain the “initial excitement” following the announcement of Apple Intelligence at WWDC 2024, particularly as competitors have made significant advancements in the months that followed. Kuo argues that cloud-based AI platforms like OpenAI’s ChatGPT have an advantage over Apple Intelligence, which is constrained by its reliance on hardware for processing.
“Apple’s promotion of on-device AI encounters various structural hurdles. Although there was initial excitement surrounding Apple Intelligence’s launch at WWDC 2024, its relevance has notably dwindled compared to rapidly developing cloud AI services,” Kuo stated. He further mentioned that “there is no indication that Apple Intelligence can significantly influence hardware replacement cycles.”
Apple has been gradually rolling out features of Apple Intelligence. Initially, the company incorporated Writing Tools and summarization capabilities with the release of iOS 18.1. Following that, iOS 18.2 introduced Genmoji, Image Playgrounds, and integration with ChatGPT. However, the much-anticipated enhanced Siri with on-screen awareness is still set to arrive in April.
Additionally, the limited interest in Apple Intelligence can be attributed to its accessibility. It’s not just the hardware requirements but also the fact that Apple’s AI features are exclusively available in English at this point. The company has indicated plans to support more languages later this year.
Nonetheless, Apple has been actively leveraging Apple Intelligence to market its newest devices. Promotional materials for the iPhone 16 and M4 Macs prominently feature capabilities like Genmoji and text summarization.
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