Apple’s Focus on AI Might Boost iPhone Sales as Consumers Seek To Upgrade

On Monday at Apple’s developer conference, the tech giant spotlighted its latest AI enhancements, including ChatGPT integration. It also revealed plans to boost iPhone sales.

In the face of fluctuating consumer spending and renewed competition from tech rivals, Apple has turned to AI to energize its base of over a billion loyal customers and to counteract a drop in sales of its top-selling product.

According to many analysts, the software, which is compatible exclusively with the iPhone 15 Pro and Pro Max, might trigger a wave of new purchases. Certain analysts forecast that this fall could see the largest surge in upgrades since the iPhone 12’s debut in 2020, which drew buyers with its 5G feature.

Analyst Gil Luria of D.A. Davidson said, “What we saw today was more compelling than anything we’ve seen since.”

At the conference, Apple introduced its version of generative AI, named Apple Intelligence, which can produce text, images, and various content upon request.

Apple showcased its AI capabilities, highlighting features such as creating personalized emojis, generating cartoon messages for friends, and refining emails for a more professional tone. It also revealed that the digital assistant Siri will be able to suggest using ChatGPT for further assistance.

Many analysts expressed doubt, however, suggesting that consumers might not rush to Apple stores to purchase additional AI functionalities for their phones.

Forrester analyst Dipanjan Chatterjee said, “Perhaps there may be enough in the new and improved Siri-powered, intelligently Apple devices to stanch some of the device revenue that’s been hemorrhaging lately, but there isn’t enough to create a new band of followers.”

Tejas Dessai of Global X said, “Investors clearly want a more comprehensive and ambitious strategy from Apple when it comes to AI.” Following the announcement, the company’s stock experienced a 2% decline.

Regardless of whether or not this upgrade is popular, not all iPhone models will have access to Apple’s AI features.

The tech giant announced that smartphone users will be required to shift to the iPhone 15 Pro or Pro Max, which Apple launched in September 2023, to access its AI capabilities. The AI functionality, designed for private data processing directly on the user’s device, relies on the chips found in Apple’s newer smartphone models.