Constellation Research founder R. “Lei” Wang talks about Elon Musk threatening to ban his company from using Apple products over its partnership with OpenAI.
Some analysts predict that Apple’s artificial intelligence features will encourage consumers to upgrade their iPhones, benefiting future sales.
The Cupertino, California-based tech giant announced on Monday that it will build “Apple Intelligence” into select iPhone, iPad and Mac devices later this year, aiming to “provide highly useful and relevant information.”
The company announced its highly anticipated AI efforts during the Worldwide Developers Conference (WWDC), while also previewing new non-AI features for upcoming versions of its various operating systems.
Apple unveils “Apple Intelligence” at WWDC
According to Apple, Apple Intelligence will bring a host of AI-powered features to countless apps, including texting, calling, Siri, Mail, Notes and Photos, on devices that can support the technology. The company also plans to introduce a “Writing Tools” feature and ChatGPT access to Siri this year.
The Apple Inc. logo is seen at one of the company’s stores in Sydney, Australia, Friday, March 18, 2022. The launch of Apple’s latest iPhones is changing the way U.S. customers buy devices, in a move that could see it cut out wireless carriers. (Photographer: Brent Lewin/Bloomberg via Getty Images/Getty Images)
“We believe Apple’s AI strategy will leverage its golden installed base around personalization and LLM. [large language models] “This phone should spark an AI-driven iPhone upgrade cycle that starts with the iPhone 16 and change Cupertino’s growth trajectory,” Wedbush Securities analyst Daniel Ives said in a research note after WWDC.
Goldman Sachs predicted that Apple Intelligence could also drive further device upgrades.
“Apple Intelligence will only be available on the iPhone 15 Pro/Pro Max, or M1 or above iPads and Macs. We see this as a catalyst for strong device upgrade demand starting with the iPhone 16 this fall,” Goldman analyst Michael Ng said in a research note.
NEW YORK, NY – SEPTEMBER 22: Apple CEO Tim Cook (CL) stands next to Sofia Leyva from Argentina as she purchases Apple’s new iPhone 15 during a launch event at the Apple Store on 5th Avenue on September 22, 2022 in New York City. (Getty Images/Getty Images)
Ng said he and other Goldman analysts are “encouraged by the financial impact” of both the new operating system and the AI capabilities Apple is developing.
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According to a Goldman research note, Apple’s various upcoming features will not only encourage more customers to upgrade their Apple devices, but also “leave the opportunity to monetize AI more directly in the future,” as well as “potentially mitigating compute costs by allowing users with paid ChatGPT accounts to link them to their Apple accounts.”
| Ticker | safety | last | change | change % |
|---|---|---|---|---|
| AAPL | Apple. | 207.15 | +14.03 | +7.26% |
Many Apple observers believe the tech giant will launch the iPhone 16 models in the fall, similar to previous smartphone iterations over the past few years — the iPhone 15 series, for example, was officially unveiled in September.
An Apple logo hangs outside the Bill Graham Civic Auditorium before the start of an event in San Francisco, California on September 7, 2016. — Apple is expected to unveil new iPhones and possibly a second-generation smartwatch on Wednesday. (Josh Edelson/AFP via Getty Images/Getty Images)
In the first quarter of 2024, rival Samsung shipped 60.1 million smartphones, surpassing Apple. according to International Data Corporation (IDC).
Samsung overtakes Apple as top mobile phone maker: Report
The company predicted in January that Apple would take the top spot in smartphone shipments in 2023, overtaking Samsung, which had held the market top spot for 13 consecutive years.
Apple last month said its iPhone net sales for the first two quarters of 2024 would reach about $115.67 billion, representing a slight decline of 1.2% compared to the same six months of the previous fiscal year.
