The move, highlighted by its new “Apple Intelligence,” targets over a billion loyal users and seeks to reverse the recent sales decline of its flagship product.
Apple’s conference showcased an ambitious integration of artificial intelligence into its software, featuring capabilities powered by ChatGPT. Dubbed “Apple Intelligence,” the AI can generate custom emojis, craft professional emails, and even create cartoons for messaging. Siri, Apple’s digital assistant, now also offers to summon ChatGPT’s help, expanding its functionality significantly.
Despite the innovation, some analysts remain skeptical. Apple’s stock dipped by 2% following the announcements, reflecting investor wariness over the company’s AI strategy.
The AI features require the latest hardware—an iPhone 15 Pro or Pro Max—compelling many users to upgrade. Analysts like Dan Ives of Wedbush Securities see this as a significant opportunity, predicting that the much-anticipated iPhone 16, due this autumn, could trigger the largest upgrade cycle since the iPhone 12’s 5G debut in 2020. Ives estimates that around 270 million iPhones have not been upgraded in four years, with at least 15% of users expected to make the switch.
Apple’s iPhone revenue fell to $200.6 billion in the fiscal year ending September 2023, down from $205.5 billion the previous year. Analysts like Gil Luria of D.A. Davidson argue that the AI enhancements unveiled are the most compelling since the iPhone 12’s launch, potentially spurring significant consumer interest.
While AI is a key focus, it’s just part of Apple’s allure. Features like a larger display or an improved camera often drive upgrades, but the new AI capabilities are expected to attract early adopters and enhance user experience across the device.
